Document:

Exhibit 10(f)

 

THE EMPIRE DISTRICT ELECTRIC COMPANY

 

CHANGE IN CONTROL SEVERANCE PAY PLAN

 

 

 

 

 

AS AMENDED AND RESTATED

 

EFFECTIVE JANUARY 1, 2008

 

 

 

THE
EMPIRE DISTRICT ELECTRIC COMPANY

CHANGE IN CONTROL SEVERANCE PAY PLAN

 

Table of Contents

 

	
  Section

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  1.

  	
   

  	
  PURPOSE

  	
   

  	
  1

  	
   

  
	
  2.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  	
   

  
	
  3.

  	
   

  	
  BENEFITS

  	
   

  	
  4

  	
   

  
	
  4.

  	
   

  	
  PAYMENTS

  	
   

  	
  8

  	
   

  
	
  5.

  	
   

  	
  ADMINISTRATION
  OF THE PLAN

  	
   

  	
  9

  	
   

  
	
  6.

  	
   

  	
  LITIGATION
  EXPENSES

  	
   

  	
  10

  	
   

  
	
  7.

  	
   

  	
  AMENDMENT,
  SUSPENSION, OR TERMINATION OF THE PLAN

  	
   

  	
  10

  	
   

  
	
  8.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
  APPENDIX
  A

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

SECTION 1.
PURPOSE

 

The purpose of The Empire District Electric Company
Change in Control Severance Pay Plan is to encourage Employees to make and
continue careers with The Empire District Electric Company by providing
eligible Employees with certain severance pay benefits upon such Employees’
Involuntary Termination or Voluntary Termination of employment following a
Change in Control, as set forth herein and as evidenced by Agreements between
the Company and such Employees.

 

SECTION 2.
DEFINITIONS

 

When used herein the following
terms shall have the following meanings:

 

2.1           “Agreement” means an Agreement entered into between the
Company and an Employee to provide severance pay and other benefits hereunder.

 

2.2           “Board of Directors” means the Board of Directors of The Empire District
Electric Company.

 

2.3           “Change in Control’ shall be deemed to have occurred if:

 

(a)  a merger or
consolidation of the Company with any other corporation is consummated, other
than a merger or consolidation which would result in the Voting Securities of
the Company held by such shareholders outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by converting into
Voting Securities of the surviving entity) more than 75 percent of the Company
or such surviving entity outstanding immediately after such merger or consolidation;

 

(b)  a sale,
exchange or other disposition of all or substantially all the assets of the
Company for the securities of another entity, cash or other property is consummated;

 

(c)  the
shareholders of the Company approve a plan of liquidation or dissolution of the
Company;

 

(d)  any “person”
(as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended), other than a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or other than
a corporation owned directly or indirectly by the shareholders of the 

 

 

Company in
substantially the same proportions as their ownership of Voting Securities of
the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under said Act), directly or indirectly, of Voting Securities of the Company
representing at least 25 percent of the total voting power represented by the
Voting Securities of the Company then outstanding; or

 

(e)  individuals
who on January 1, 2001 constitute the Board of Directors of the
Company and any new director whose election by the Board of Directors of the
Company or nomination for election by the Company’s shareholders was approved
by a vote of at least two-thirds of the directors then still in office who
either were directors on January 1, 2001 or whose election or
nomination for election was previously so approved, cease for any reason to
constitute a majority thereof.

 

2.4           “Committee” means the Committee provided for
in Section 5.

 

2.5           “Company” means
The Empire District Electric Company and its successors and assigns.

 

2.6           “Employee” means any key employee of the
Company or a subsidiary who is designated by the Board of Directors of the
Company to participate in the Plan.

 

2.7           “Involuntary Termination” shall mean any termination of an
Employee’s employment by the Company, or by one of its Subsidiaries, within two
years after a Change in Control; provided, however, such term shall not include
a termination by the Company or any of its Subsidiaries, for (i) serious,
willful misconduct in respect of the Employee’s obligations to the Company or
its Subsidiaries, which has caused demonstrable and serious injury to the Company
or any of its Subsidiaries, monetary or otherwise, as evidenced by a
determination in a binding and final judgment, order or decree of a court or
administrative agency of competent jurisdiction, in effect after exhaustion or
lapse of all rights of appeal, in an action, suit or proceeding, whether civil,
criminal, administrative or investigative; (ii) conviction of a felony,
which has caused demonstrable and serious injury to the Company or any of its
Subsidiaries, monetary or otherwise, as evidenced by binding and final
judgment, order, or decree of a court of competent jurisdiction, in effect
after exhaustion or lapse of all rights of appeal; or (iii) willful and
continual failure of the Employee to substantially perform the Employee’s
duties for the Company or any of its Subsidiaries (other than resulting from
the Employee’s incapacity due to physical or mental illness) which failure
continued for a period of at least thirty (30) days after a written notice of
demand for substantial performance has been delivered to the Employee
specifying the manner in which the Employee has failed to substantially
perform.

 

 

In addition to a termination of employment as
described above, an Involuntary Termination of an Employee shall be deemed to
have occurred if the Employee terminates employment within two years after a
Change in Control and within 180 days after the occurrence of any of the
following:  (i) a material reduction
or material adverse change in, or a material change which is inconsistent with,
an Employee’s responsibilities, duties, authority, power, functions, title,
working conditions or status from those in effect immediately prior to the
Change in Control; or (ii) a reassignment to another geographic location
more than 50 miles from the Employee’s place of employment immediately prior to
the Change in Control; or (iii) a reduction in base salary or incentive
compensation, if any, from those in effect immediately prior to the Change in
Control; or (iv) a material reduction in any other benefits (including,
without limitation, pension and welfare benefits and benefits under any
employee stock purchase plan) from those in effect prior to the Change in
Control other than a reduction which applies generally to all other similarly
situated employees; or (v) a breach by the Company of its obligation under
Section 8.4.  For purposes of the
preceding sentence, a reduction in incentive compensation will be deemed to
have occurred if and only if either (i) the percentage of salary awarded
to the Employee as incentive compensation in the form of cash or restricted
stock (whether or not vested) under the Company’s Management Incentive Plan (or
any successor plan) or as cash merit awards under any other incentive
compensation plan, program or arrangement of the Company or any of its
Subsidiaries for any calendar year is less than the average percentage of
salary so awarded for the three calendar years immediately preceding the
calendar year in which the Change in Control occurs, or (ii) the rate of
vesting of any such restricted stock awards is less rapid than the average rate
of vesting for such awards made for the three calendar years immediately
preceding the calendar year in which the Change in Control occurs.  In making the calculations required by the
preceding sentence, (i) cash awards shall be valued at the actual dollar
amount of the cash payment made to the Employee and shall be allocated to the
calendar year in which the payment is actually made (rather than the calendar
year for which the payment is made), and (ii) restricted stock shall be
valued at the value of the stock on the date the restricted stock is granted
(as it were fully vested on that date) and shall be allocated to the calendar
year in which the restricted stock is granted (rather than the calendar year in
which the restricted stock would vest).

 

 

2.8           “Plan” means The Empire District Electric Company
Change in Control Severance Pay Plan as set forth herein and amended from time
to time.

 

2.9           “Subsidiary” means a “subsidiary corporation” as
defined in Section 424(f) of the Internal Revenue Code of 1986, as
amended (the “Code”).

 

2.10         “Voluntary Termination” means any termination of an
Employee’s employment, at the election of such Employee (other than a
termination constituting an Involuntary Termination), provided such termination
occurs during the period commencing on the first anniversary of the date of the
Change in Control and ending on the last day of the calendar month in which
falls the date which is eighteen months after the date of such Change in
Control.

 

2.11         “Voting Securities” means any securities of the
Company which vote generally in the election of directors.

 

SECTION 3.
BENEFITS

 

3.1           In the
event of the Involuntary Termination of any Employee who is a senior officer on
the date on which the applicable Agreement is entered into (or amended), the
Company shall pay such officer an amount equal to 36 months of
Compensation.  For purposes of this Section 3.1,
an Employee’s Compensation shall be one-twelfth of the sum of (i) the
Employee’s annual base salary as in effect immediately prior to the date of
Involuntary Termination (or, if greater, immediately prior to the date of the
Change in Control) plus (ii) the average of the annual awards of incentive
compensation made to the Employee in the form of cash or restricted stock
(whether or not vested) under the Company’s Management Incentive Plan (or any
successor plan) or as cash merit awards under any other incentive compensations
plan, program or arrangement of the Company or any of its Subsidiaries in the
three calendar years (or, if less, the Employee’s entire period of service)
immediately preceding the calendar year in which occurs the Employee’s
Involuntary Termination.  In determining
the average referred to in (ii) of the preceding sentence, (i) cash
awards shall be valued at the actual dollar amount of the cash payment made to
the Employee and shall be allocated to the calendar year in which the payment
is actually made (rather than the calendar year for which the payment is made),
and (ii) restricted stock shall be valued at the value of the stock on the
date the restricted stock is granted (as if it were fully vested on that date)
and shall be allocated to the calendar year in which the restricted stock is
granted (rather than the calendar year in which the restricted stock would
vest).  In the case of an Employee
entitled to the benefit described in this Section 3.1, the “Incremental
Period” for purposes of this Plan shall be 36 months.

 

 

3.2           In the
event of the Involuntary Termination of any Employee who is not a senior
officer on the date on which the applicable Agreement is entered into (or
amended), the Company shall pay such Employee an amount equal to the product of
such Employee’s weekly base salary as in effect immediately prior to the date
of Involuntary Termination (or if greater, immediately prior to the date of the
Change in Control), multiplied by the greater of (i) 17 weeks or (ii) a
number of weeks equal to two times the Employee’s number of full years of
employment by the Company or a Subsidiary. 
In the case of an Employee entitled to the benefit described in this Section 3.2,
the “Incremental Period’ for purposes of this Plan shall be the number of weeks
corresponding to the multiple applicable to such Employee pursuant to this Section 3.2.

 

3.3           Any
payments pursuant to Sections 3.1 or 3.2 of this Plan shall be paid to the
Employee in a lump sum within thirty (30) days following the Employee’s
Involuntary Termination; provided, however, that such payment shall be reduced
by the amount paid to the Employee pursuant to any other severance pay policy
of the Company and its Subsidiaries.

 

3.4           In the event of a Voluntary
Termination by an Employee, the Employee shall be entitled to receive the
amount otherwise determined pursuant to Section 3.1 or 3.2 hereof, as the
case may be, in a lump sum within thirty (30) days following the Employee’s
Voluntary Termination; provided, however, that such payment shall be reduced by
the amount paid to the Employee pursuant to any other severance pay policy of
the Company and its Subsidiaries.  In the
case of an Employee entitled to payments described in this Section 3.4,
the “Incremental Period” for purposes of this Plan shall be (i) in the
case of an Employee who is a senior officer on the date on which the applicable
Agreement is entered into (or amended), 36 months, and (ii) in the case of
any other Employee, the greater of 17 weeks or a number of weeks equal to two
times the Employee’s number of full years of employment by the Company or a
Subsidiary. Notwithstanding the foregoing, in the event an Employee who
receives a lump sum payment pursuant to this Section 3.4 becomes otherwise
employed before the end of the Incremental Period, including self-employment in
a trade of business in which personal services of the Employee are a material
income-producing factor, the Employee shall, within thirty (30) days after
becoming so employed, notify the Secretary of the Company of such employment
and pay to the Company an amount equal to the lump sum payment the Employee had
received pursuant to this Section 3.4 multiplied by a fraction (i) the
numerator of which is the number of days during the period beginning on the day
on which the Employee becomes so employed and ending on the last day of the
Incremental Period and (ii) the denominator of which is the number of days
in the entire Incremental Period.

 

 

3.5           In the event that the employment of
an Employee who is a senior officer on the date on which the applicable
Agreement is entered into (or amended) terminates pursuant to Section 3.1
or 3.4 hereof, and such Employee is entitled to receive retirement benefits
under The Empire District Electric Company Employees’ Retirement Plan (or any
successor plan)(the “Retirement Plan”), the Employee shall also be entitled to
receive the difference between (i) the monthly retirement benefits the
Employee would have been entitled to receive under the terms of the Retirement
Plan and The Empire District Electric Company Supplemental Executive Retirement
Plan (or any successor plan)(the “Supplemental Plan”), as in effect on the day
on which the Employee’s employment terminates, if the Employee had accumulated
additional service equal to the “Incremental Period” applicable to such
Employee, received earnings during such Incremental Period at the rate in
effect during the year in which the Employee’s employment terminates or, if
greater, at the rate in effect immediately prior to the date of the Change in
Control (calculated on an annualized basis), and had attained the age such
Employee would have attained as of the last day of the “Incremental Period” and
(ii) the retirement benefits the Employee is entitled to receive under the
Retirement Plan and Supplemental Plan. 
The benefits payable pursuant to this Section 3.5 shall include all
ancillary benefits under the Retirement Plan and Supplemental Plan (such as
early retirement and surviving spouse death benefits and benefits available at
retirement), and shall be paid in such manner as may be elected by the Employee
before the Employee’s commencement of participation in this Plan (or, if
earlier, the Employee’s commencement of participation in the Supplemental Plan)
in accordance with procedures established by the Company consistent with Section 409A
of the Internal Revenue Code of 1986, as amended (or, in the case of an
Employee who became a participant in this Plan before January 1, 2008, in
such manner as may be elected by the Employee on or before December 31,
2007 in accordance with procedures established by the Company consistent with
transition rules established by the Internal Revenue Service under said Section 409A).  The available options as to the form and time
of payment of such benefits shall be the same as the payment options that are
available for the corresponding benefits under the Retirement Plan on the date
the election is made.  Notwithstanding
the foregoing, in accordance with regulations under Section 409A of the
Code, an Employee may at any time prior to the benefit commencement date elect
to change the form of payment of such benefits from one type of life annuity to
another actuarially equivalent type of life annuity which is an available
option at the time of the change and which has the same scheduled date of the
first annuity payment or to change the beneficiary.  Actuarial equivalency shall be determined in
accordance with the actuarial assumptions set forth in the Retirement Plan.

 

 

3.6           During
the Incremental Period applicable to an Employee under Sections 3.1, 3.2 or 3.4
of this Plan or until coverage is available under a new employer’s plan
providing coverage of the same type, if earlier, the Employee shall continue to
be entitled to all benefits and service credit for benefits under medical,
dental, life and accident insurance plans, programs and arrangements of the
Company or its Subsidiaries as if the Employee had continued in the employment
of the Company or a Subsidiary as a regular full-time employee for purposes of
such medical, dental, life and accident insurance plans, programs and
arrangements (including meeting any age and service requirements for post
retirement benefits if the Employee would have met such requirements if the
Employee had remained in employment with the Company for such period).  Such coverage shall be no less in scope than
that provided to the covered Employee (and covered family members) under the
applicable plan, program or arrangement at the time of Change in Control.  The Employee shall be required to share the
cost of any such coverage with the Company during the Incremental Period by
continuing to pay the same percentage of the cost of such coverage that the
Employee was required to pay at the time of Change in Control.  With respect to an Employee’s participation
in the medical, dental, life, and accident insurance plans, programs and
arrangements as described in this Section 3.6, the following conditions
shall be met:  (i) the amount
eligible for reimbursement or payment under any such plan, program or
arrangement in one calendar year may not affect the amount eligible for
reimbursement or payment under such plan, program or arrangement in any other
calendar year (except that the Company’s or Subsidiary’s medical and dental
plans may impose a limit on the amount that may be reimbursed or paid), (ii) any
reimbursement must be made on or before the last day of the calendar year
following the calendar year in which the expense was incurred, and (iii) the
Employee’s right to reimbursement or benefits under any such plans, programs
and arrangements may not be subject to liquidation or exchange for another
benefit.

 

3.7           If, by
reason of the requirements for tax qualification or any other reason, benefits
or service credits under any medical, dental, life or accident insurance plan,
program or arrangement shall not be payable or provided under any such plan,
program or arrangement to the Employee or the Employee’s dependents,
beneficiaries or estate despite the provisions of Section 3.6 above, the
Company itself shall, to the extent necessary, pay or provide for payment of
such benefits and service credit for such benefits to the Employee or the
Employee’s dependents, beneficiaries or estate.

 

3.8           If any
payment or benefit received by or in respect of an Employee who is a senior
officer on the date on which the applicable Agreement is entered into (or
amended) which is provided under this Plan or any other plan, arrangement or
agreement with the Company or any of its Subsidiaries (determined without
regard to 

 

 

any additional payments required under this Section 3.8 and
Appendix A) (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 similar
tax that may hereafter be imposed) or any interest or penalties are incurred by
such Employee with respect to such excise tax (such excise tax, together with
any such interest and penalties, being hereinafter collectively referred to as
the “Excise Tax”), the Company shall pay to the Employee with respect to such
Payment at the time specified in Appendix A an additional amount (the “Gross-up
Payment”) such that the net amount retained by the Employee from the Payment
and the Gross-up Payment, after reduction for any Excise Tax upon the Payment
and any Federal, state and local income and employment tax and Excise Tax upon
the Gross-up Payment, shall be equal to the Payment. The calculation and
payment of the Gross-up Payment shall be subject to the provisions of Appendix
A. The Gross-up Payment shall be made from the general assets of the Company.

 

SECTION 4. PAYMENTS

 

4.1           All payments pursuant to Sections 3.1
through 3.5 hereof shall be made from the general assets of the Company;
provided, however, that such payments shall be reduced by the amount of any
payments made to an Employee from any trust or special or separate fund
established by the Company to assure such payments.  The Company shall not be required to
establish a special or separate fund or other segregation of assets to assure
such payments, and, if the Company shall make any investments to aid it in
meeting its obligations hereunder, Employees shall have no right, title or
interest whatever in or to any such investments except as may otherwise be
expressly provided in a separate written instrument relating to such
investments.  Nothing contained in this
Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust of any kind between the Company and any
Employees.  To the extent that any
Employee acquires a right to receive payments from the Company hereunder, such
right shall be no greater than the right of an unsecured creditor of the
Company.

 

4.2           If
the payment of any severance pay or other benefits hereunder to an Employee who
is not a senior officer on the date on which the applicable Agreement is
entered into (or amended), either alone or together with other payments which
such Employee has a right to receive from the Company and its Subsidiaries,
would constitute a “parachute payment” (as defined in Section 280G of the
Code), the payments to such Employee required by this Plan shall be reduced to
the largest amount as will result in no portion of the payment being subject to
the excise tax (the “Excise Tax”) imposed by Section 4999 of the Code; but
only if, by reason of such reduction, such Employee’s “net after tax benefit”
would exceed the “net after tax benefit” if such reduction were not made.  For purposes of this Section 4.2, “net
after 

 

 

tax benefit” shall mean (i) the total of all payments and benefits
which an Employee receives or is entitled to receive from the Company or a
Subsidiary that would constitute a “parachute payment” within the meaning of Section 280G
of the Code, less (ii) the amount of federal income taxes payable with
respect to such payments calculated at the maximum marginal tax income rate for
each year in which such payments shall be made (based on the rate as set forth
in the Code as in effect at the time of the first payment), less (iii) the
amount of the Excise Tax imposed with respect to such payments and benefits. If
such a reduction is required, the determination of how that reduction is to be
accomplished shall be made by the Company, in a manner which the Company
believes in good faith to be in the best interest of the Employee.

 

4.3           The Company may deduct from any
payments hereunder any Federal, state or local withholding or other taxes or
charges which are required to be deducted under applicable laws.

 

SECTION 5. ADMINISTRATION
OF THE PLAN

 

5.1           The Compensation Committee of the
Board of Directors (the “Committee”) shall have general responsibility for the
administration and interpretation of the Plan.

 

5.2           The Committee may arrange for the
engagement of such legal counsel, who may be counsel for the Company, and make
use of such agents and clerical or other personnel as it shall require or may
deem advisable for purposes of the Plan. 
The Committee may rely upon the written opinions of such counsel, and
may delegate to any agent or to any sub-committee or member of the Committee
its authority to perform any act, including without limitation those matters
involving the exercise of discretion; provided, however, that such delegation
shall be subject to revocation at any time at the discretion of the Committee.

 

5.3           If any claim for benefits under the
Plan is wholly or partially denied, the Committee shall give written notice by
registered or certified mail of such denial to the claimant within 90 days
after receipt of the written claim by the Committee.  Notice must be written in a manner calculated
to be understood by the claimant, setting forth the specific reasons for such
denial, specific reference to pertinent Plan provisions on which the denial is
based, 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 an explanation of the Plan’s claim review
procedure.  The Committee shall also
advise the claimant that the Employee or the Employee’s duly authorized
representative may request a review by the Committee of the decision to deny
the claim by filing with the Committee, within 65 days after such notice has
been received by the claimant, a written request for such review.  

 

 

The claimant may review pertinent documents and submit issues and
comments in writing within the same 65-day period. If such request is so filed,
such review shall be made by the Board within 60 days after receipt of such
request, unless special circumstances (including, but not limited to, a need to
hold a hearing) require an extension of time for processing, in which case a
decision shall be rendered not later than 120 days after receipt of the request
for review. The claimant shall be given written notice within such 60-day (or
120-day) period of the decision resulting from such review, which shall include
specific reasons for the decision, written in a manner calculated to be
understood by the claimant, and specific references to the pertinent Plan
provisions on which the decision was based.

 

SECTION 6.
LITIGATION EXPENSES

 

In the event of any litigation or other proceeding
between the Company and the Employee with respect to the subject matter of this
Plan and the enforcement of the Employee’s rights hereunder, the Company shall
reimburse the Employee for all of the Employee’s reasonable costs and expenses
relating to such litigation or other proceeding, including the Employee’s
reasonable attorney’s fees and expenses. 
In no event shall the Employee be required to reimburse the Company for
any of the costs and expenses relating to such litigation or other
proceeding.  The obligation of the
Company under this section shall survive the termination for any reason of this
Plan.  The obligation of the Company to
reimburse an Employee under this Section 6 shall remain in effect during
the term of this Agreement and for a period of five years following the
Termination for any reason of this Agreement and is subject to the following
conditions:  (i) the amount eligible
for reimbursement under this Section 6 in one calendar year may not affect
the expenses eligible for reimbursement under this Section 6 in any other
calendar year, (ii) any reimbursement must be made on or before the last
day of the calendar year following the calendar year in which the expense was
incurred, and (iii) the Employee’s right to reimbursement under this Section 6
may not be subject to liquidation or exchange for another benefit.

 

SECTION 7. AMENDMENT,
SUSPENSION, OR TERMINATION OF THE PLAN

 

The Board of Directors shall have the power at any
time and from time to time to amend, suspend or terminate the Plan in whole or
in part at any time and for any reason, provided, however, that any such
amendment, suspension or termination may not adversely affect in any way the
rights of any Employee under any Agreement entered into prior to such
amendment, suspension or termination, without the Employee’s consent.

 

 

SECTION 8.
MISCELLANEOUS

 

8.1           Nothing contained in the Plan shall
give any Employee the right to be retained in the employment of the Company or
any of its affiliated or associated corporations or affect the right of any
such employer to dismiss any Employee.

 

8.2           If the Committee shall find that any
person to whom any amount is payable under the Plan is unable to care for his
or her affairs because of illness or accident, or is a minor, or has died, then
any payment due him or her or his or her estate (unless a prior claim therefor
has been made by a duly appointed legal representative) may, if the Committee
so elects, be paid to his or her spouse, a child, a relative, an institution
maintaining or having custody of such person or any other person deemed by the
Committee to be a proper recipient on behalf of such person otherwise entitled
to payment.  Any such payment shall be a
complete discharge of the liability of the Plan therefor.

 

8.3           Except insofar as may otherwise be
required by law, no amount payable at any time under the Plan shall be subject
in any manner to alienation by anticipation, sale, transfer, assignment,
bankruptcy, pledge, attachment, charge or encumbrance of any kind or in any
manner be subject to the debts or liabilities of any person and any attempt so
to alienate or subject any such amount, whether at the time or thereafter
payable, shall be void.  If any person
shall attempt to, or shall, alienate, sell, transfer, assign, pledge, attach,
charge or otherwise encumber any amount payable under the Plan, or any part
thereof, or if by reason of his or her bankruptcy or other occurrence at any
time such amount would be made subject to the Employee’s debts or liabilities
or would otherwise not be enjoyed by him or her, then the Committee, if it so
elects, may direct that such amount be withheld and that the same amount or any
part thereof be paid or applied to or for the benefit of such person, in such
manner and proportion as the Committee may deem proper.

 

8.4           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, by express written agreement, to assume this Plan and any Agreements
between the Company and Employees pursuant to this Plan.

 

8.5           The captions preceding the sections
of the Plan have been inserted solely as a matter of convenience and do not in
any way define or limit the scope or intent of any provisions of the Plan.

 

8.6           The Plan and all rights thereunder
shall be governed by and construed in accordance with the laws of the State of
Missouri.

 

 

8.7           Notwithstanding
anything in this Plan to the contrary, (i) if an Employee is a “specified
employee” (within the meaning of Section 409A of the Internal Revenue Code
of 1986, as amended, and the regulations thereunder and as determined by the
Company in accordance with said Section 409A) at the time of the Employee’s
separation from service (as defined below), the payment of any benefit pursuant
to Section 3.1, 3.2, 3.4, or 3.5 shall be made no earlier than the date
which is 6 months after the date of the Employee’s separation from service (or,
if earlier than the end of such 6-month period, the date of the Employee’s
death), and (ii) the Employee shall be deemed to have terminated from
employment for purposes of this Plan if and only if the Employee has
experienced a “separation from service” within the meaning of said Section 409A
and the regulations thereunder.  To the
extent any payment under Section 3.1, 3.2, 3.4, or 3.5 is subject to the
6-month delay, such payment shall be paid immediately after the end of such
6-month period (or the date of death, if earlier).  The provisions of this Plan shall be
interpreted and operated consistently with the requirements of Section 409A
of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder (to the extent applicable).

 

APPENDIX
A

 

Gross-up
Payments

 

The following provisions shall be applicable with
respect to the Gross-up Payments described in Section 3.8:

 

a.  For purposes of
determining whether any of the Payments will be subject to the Excise Tax and
the amount of such Excise Tax, (a) all of the Payments received or to be
received shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of
the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) of
the Code shall be treated as subject to the Excise Tax unless, in the opinion
of tax counsel selected by the Company, the Payments (in whole or in part) do
not constitute parachute payments, including by reason of Section 280G(b)(4)(A) of
the Code, or excess parachute payments (as determined after application of Section 280G(b)(4)(B) of
the Code), and (b) the value of any non-cash benefits or any deferred
payment or benefit shall be determined by independent auditors selected by the
Company in accordance with the principles of Sections 280G(d)(3) and (4) of
the Code.  For purposes of determining
the amount of the Gross-up Payment the Employee shall be deemed to pay Federal
income taxes at the highest marginal rate of Federal income taxation in the
calendar year in which the Gross-up Payment is to be made and state and local
income taxes at the highest marginal rate of taxation to which such payment
could be subject based upon the 

 

 

state
and locality of the Employee’s residence or employment, net of the maximum
reduction in Federal income taxes which could be obtained from deduction of
such state and local taxes.  In addition,
for purposes of determining the amount of the Gross-up Payment, the Company
shall make a determination of the amount of employment taxes required to be
paid on the Gross-up Payment.  In the
event that the Excise Tax is subsequently determined to be less than the amount
taken into account hereunder at the time the Gross-up Payment is made, the
Employee shall repay to the Company, at the time that the amount of such
reduction in Excise Tax is finally determined, the portion of the Gross-up
Payment attributable to such reduction (plus the portion of the Gross-up
Payment attributable to the Excise Tax and Federal and state and local income
and employment tax imposed on the portion of the Gross-up Payment being repaid
by the Employee if such repayment results in a reduction in Excise Tax and/or a
Federal and state and local income or employment tax deduction), plus interest
on the amount of such repayment at the Federal short-term rate as defined in Section 1274(d)(1)(C)(i) of
the Code.  In the event that the Excise
Tax is determined to exceed the amount taken into account hereunder at the time
the Gross-up Payment is made (including by reason of any payments the existence
or amount of which cannot be determined at the time of the Gross-up Payment),
the Company shall make an additional gross-up payment in respect of such excess
(plus any interest, penalties or additions payable with respect to such excess)
at the time that the amount of such excess is finally determined.  Notwithstanding the foregoing, the Company
shall withhold from any payment due to the Employee the amount required by law
to be so withheld under Federal, state or local wage and employment tax withholding
requirements or otherwise (including without limitation Section 4999 of
the Code), and shall pay over to the appropriate government authorities the
amount so withheld.

 

b.  The Gross-up
Payment with respect to a Payment shall be paid not later than the thirtieth
day following the date of the Payment; provided, however, that if the amount of
such Gross-up Payment or portion thereof cannot be finally determined on or
before such day, the Company shall pay to the Employee on such date an
estimate, as determined in good faith by the Company, of the amount of such
payments and shall pay the remainder of such payments (together with interest
at the Federal short-term rate provided in Section 1274(d)(1)(C)(i) of
the Code) as soon as the amount thereof can be determined.  In the event that the amount of the estimated
payments exceeds the amount subsequently determined to have been due, such
excess shall constitute a loan by the Company to the Employee, payable on the
fifth day after demand by the Company (together with interest at the Federal
short-term rate provided in Section 1274(d)(1)(C)(i) of the
Code).  At the time that payments are
made under Section 3.8 and this Appendix A, the Company shall provide the
Employee with a written statement setting forth the manner in which such payments
were calculated and the basis for such calculations, including, without limitation,
any 

 

 

opinions
or other advice the Company has received from outside counsel, auditors or
consultants (and any such opinions or advice which are in writing shall be
attached to the statement).

 

c.  Anything
in this Plan (including, without limitation, this Appendix A) to the contrary
notwithstanding, in no event shall any payment by the Company pursuant to this
Appendix A be made later than the end of the Employee’s taxable year next
following the Employee’s taxable year in which the Employee remits the related
taxes.Exhibit 10(g)

 

SEVERANCE
PAY AGREEMENT

 

THIS AGREEMENT dated as of
____________, between THE EMPIRE DISTRICT ELECTRIC COMPANY (the “Company”), a
Kansas corporation, having its principal offices at 602 Joplin Street, Joplin,
Missouri, and ___________________, residing at _______________________, (the “Executive”),

 

WITNESSETH:

 

WHEREAS, the Company, by action
of its Board of Directors (the “Board”), has adopted The Empire District
Electric Company Change in Control Severance Pay Plan (the “Plan”), under which
the Company intends to enter into Severance Pay Agreements with certain key
executive officers of the Company or its Subsidiaries; and

 

WHEREAS, the Executive is
currently a duly elected and _____________________________ of The Empire
District Electric Company (herein referred to as the “Employing Company”), and
has been designated by the Board as a key executive selected to participate in
the Plan, and with whom the Company has been authorized by the Board to enter
into this Agreement; and

 

WHEREAS, the Board has deemed it
imperative that the Company be assured of continuity of management in the event
of any actual or threatened Change in Control of the Company; and

 

WHEREAS, the Company desires to
reward the Executive for the Executive’s valuable, dedicated service to the
Company and its Subsidiaries should the Executive’s service be terminated under
circumstances hereinafter described,

 

NOW, THEREFORE, to assure the
Company of the Executive’s continued dedication and the availability of the
Executive’s advice and counsel in the event of any such actual or threatened
change in control, to induce the Executive to remain in the Executive’s current
position, and to reward the Executive for the Executive’s valuable, dedicated
service to the Company and its Subsidiaries should the Executive’s service be
terminated under circumstances hereinafter described, and for other good and
valuable consideration, the receipt and adequacy of which each party acknowledges,
the Company and the Executive agree as follows:

 

                1.             Term of Agreement.  This Agreement shall commence on the date
hereof and shall continue in effect through December 31, 2006; provided,
however, that commencing on January 1, 2007 and each January 1
thereafter, the term of this Agreement shall automatically be extended for one
additional year unless, not later than September 30 of the preceding year,
the Company shall have given notice that it does not wish to extend this
Agreement; and provided further that, if a Change in Control of the Company
shall have occurred during the original or extended term of this Agreement,
this Agreement shall continue in effect for a period of twenty-four (24) months
beyond the month in which such 

 

 

Change
in Control occurred.  All capitalized
terms used herein shall have the same meaning, unless otherwise specified, as
found in the Plan.

 

                2.             Termination Following a Change in Control of the
Company.

 

(a)           If a
Change in Control of the Company occurs during the term of this Agreement, the
Executive shall be entitled to (i) the benefits provided in Subsections
3(a)(i), (b) and (c) hereof upon the Executive’s subsequent Involuntary
Termination during the term of this Agreement, or (ii) the benefits
provided in Subsections 3(a)(ii), (b) and (c) upon the Executive’s
subsequent Voluntary Termination during the term of this Agreement.

 

(b)           If the
Executive’s employment shall be terminated following a Change in Control other
than pursuant to Section 2(a), the Employing Company shall pay the
Executive the Executive’s full base salary through the Date of Termination at
the rate in effect at the time Notice of Termination is given and shall provide
any benefits to which the Executive may be entitled under any other plan, programs
and arrangements of the Company or Employing Company and neither the Company
nor the Employing Company shall have any further obligations to the Executive
under this Agreement.  Such base salary
shall be paid in accordance with the Employing Company’s normal payroll
practices.

 

(c)           Any
Involuntary Termination of the Executive by the Company or the Employing
Company, other than an Involuntary Termination at the election of the Executive
pursuant to the last paragraph of Section 2.7 of the Plan, shall be
communicated by written Notice of Termination by the Company or by the
Employing Company to the Executive.  Any
Voluntary Termination by the Executive, or Involuntary Termination at the
election of the Executive pursuant to the last paragraph of Section 2.7 of
the Plan, shall be communicated by written Notice of Termination by the
Executive to the Employing Company.  For
purposes of this Agreement, a “Notice of Termination” shall mean a notice
indicating the specific termination provision in this Agreement relied upon and
shall set forth in reasonable detail the facts and circumstances.

 

(d)           “Date of
Termination” means the date specified in the Notice of Termination, which shall
be not more than ninety (90) days after such Notice of Termination is given;
provided, that if within thirty (30) days after any Notice of Termination is
given the party receiving such Notice of Termination notifies the other party
that a dispute exists concerning the Termination, the Date of Termination shall
be the Date on which the dispute is finally resolved.

 

                3.             Compensation Upon Involuntary Termination or
Voluntary Termination.

 

(a)           If the
Executive shall incur an Involuntary Termination or Voluntary Termination,
then:

 

(i)            In the event of the Executive’s
Involuntary Termination, within thirty (30) days following the Executive’s Date
of Termination, the Company will pay, or cause the Employing Company to pay, to
the Executive as compensation for services rendered to the Company and its
Subsidiaries, a lump sum cash amount (subject to any applicable payroll or
other taxes required by law to be withheld). 
Such cash amount shall be equal to the Executive’s Compensation as
defined in Section 3.1 of the Plan, multiplied by 36; 

 

 

provided, however, that such payment shall be reduced by
the amount paid to the Executive pursuant to any other severance pay policy of
the Company and its Subsidiaries.  The
number of months represented by such multiple shall be considered the “Incremental
Period” for purposes of this Agreement.

 

(ii)           In the event the Executive elects a
Voluntary Termination, within thirty (30) days following the Executive’s Date
of Termination, the Company will pay, or cause the Employing Company to pay, to
the Executive as compensation for services rendered to the Company and its
Subsidiaries, a lump sum cash amount (subject to any applicable payroll or
other taxes required by law to be withheld). Such cash amount shall be equal to
the Executive’s Compensation as defined in Section 3.1 of the Plan,
multiplied by 36; provided, however, that such payments shall be reduced by the
amount paid to the Executive pursuant to any other severance pay policy of the
Company and its Subsidiaries. 
Notwithstanding the foregoing, in the event the Executive receives a
lump sum payment pursuant to this Section 3(a)(ii) and becomes
otherwise employed before the end of the Incremental Period, including
self-employment in a trade of business in which personal services of the
Executive are a material income-producing factor, the Executive shall, within
thirty (30) days after becoming so employed, notify the Secretary of the
Company of such employment and pay to the Company an amount equal to the lump
sum payment the Executive had received pursuant to this Section 3(a)(ii) multiplied
by a fraction (i) the numerator of which is the number of days during the
period beginning on the day on which the Executive becomes so employed and
ending on the last day of the Incremental Period and (ii) the denominator
of which is the number of days in the entire Incremental Period.

 

(iii)          If any payment or benefit received by
or in respect of the Executive under the Plan or any other plan, arrangement or
agreement with the Company or any of its Subsidiaries (determined without
regard to any additional payments required under this Subsection (a)(iii) and
Appendix A of the Plan) (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 similar tax that may hereafter be imposed) 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, being
hereinafter collectively referred to as the “Excise Tax”), the Company shall
pay to the Executive with respect to such Payment at the time specified in
Appendix A of the Plan an additional amount (the “Gross-up Payment”) such that
the net amount retained by the Executive from the Payment and the Gross-up
Payment, after reduction for any Excise Tax upon the Payment and any Federal,
state and local income and employment tax and Excise Tax upon the Gross-up
Payment, shall be equal to the Payment. 
The calculation and payment of the Gross-up Payment shall be subject to
the provisions of Appendix A of the Plan.

 

(b)           Special
Retirement Benefits.  In addition to
any other benefits the Executive may be legally entitled by contract or
pursuant to any plan, program or arrangement, the Executive will be eligible to
receive “Special Retirement Benefits” as provided herein, on a monthly basis,
so that the total retirement benefit the Executive receives from the Company
and its Subsidiaries will equal the total retirement benefit the Executive
would have received under The Empire District Electric Company Employees’
Retirement Plan (or any successor plan) (the “Retirement Plan”) and The Empire
District Electric 

 

 

Company Supplemental Executive Retirement Plan (or any
successor plan) (the “Supplemental Plan”) if the Executive had continued in the
employ of the Company and its Subsidiaries for the period from the Executive’s
Termination through the end of the Incremental Period and the Executive’s age
were the age the Executive would have attained as of the last day of the
Incremental Period.  The benefits
specified in this Subsection (b) will include all ancillary benefits under
the Retirement Plan and Supplemental Plan, such as early retirement and
surviving spouse death benefit rights and benefits available at retirement.  The amount payable to the Executive or the
Executive’s spouse hereunder shall equal the excess of:

 

(i)            the benefits
that would be paid to the Executive or the Executive’s spouse, if the
Incremental Period is added to the Executive’s credited service and age under
the Retirement Plan and Supplemental Plan, and the Executive’s earnings during
the Incremental Period are based upon the Executive’s earnings during the year
in which the Executive’s Termination occurs (excluding the cash payment
provided in Subsection (a)(i) or (ii)) or, if greater, the Executive’s
earnings at the rate in effect immediately prior to the date of the Change in
Control (on an annualized basis) over

 

(ii)           the
benefit that is payable to the Executive or the Executive’s spouse under the
Retirement Plan and Supplemental Plan.

 

The Special Retirement Benefits are to be provided on an
unfunded basis, are not intended to meet the qualification requirements of Section 401
of the Internal Revenue Code of 1986, as amended (the “Code”) and shall be
payable solely from the general assets of the Company.  Such benefits shall be payable in such manner
as may be elected by the Executive on or before December 31, 2007 in
accordance with procedures established by the Company consistent with transition
rules established by the Internal Revenue Service under Section 409A
of the Code.  The available options as to
the form and time of payment of such benefits shall be the same as the payment
options that are available for the corresponding benefits under the Retirement
Plan on the date the election is made.  Notwithstanding the foregoing, in accordance with regulations under Section 409A
of the Code, the Executive may at any time prior to the benefit commencement
date elect to change the form of payment of such benefits from one type of life
annuity to another actuarially equivalent type of life annuity which is an available
option at the time of the change and which has the same scheduled date of the
first annuity payment or to change the beneficiary. Actuarial equivalency shall be
determined in accordance with the actuarial assumptions set forth in the Retirement
Plan.

 

(c)           Insurance
and Other Special Benefits.  The
Executive’s participation in the life, accident, medical and dental insurance
plans, programs and arrangements of the Company and its Subsidiaries provided
the Executive immediately prior to the date of the Change in Control, shall be
continued by the Company for the Incremental Period or until coverage is
available under a new employer’s plan providing coverage of the same type, if
earlier, and the Executive shall be considered a regular full-time employee of
the Employing Company during such period for the purposes of such life,
accident, medical and dental insurance plans, programs and arrangements, and
the Executive shall continue to be entitled to all benefits and service credit
for such plans, programs and arrangements (including meeting any age and
service requirements for post-retirement benefits if the Executive would have
met such requirements if the Executive had remained in employment with the
Employing Company for such period).  Such
coverage shall be no less in scope than that provided to 

 

 

the Executive (and covered family members) at the time of
the Change in Control.  The Executive
shall be required to share the cost of any such coverage with the Employing
Company during such period of coverage by continuing to pay the same percentage
of the cost of such coverage that the Executive was required to pay at the time
of the Change in Control.  If, by reason
of the requirements for tax qualification or any other reason, any benefits or
service credits under the foregoing plans, programs and arrangements shall not
be payable or provided to the Executive or the Executive’s dependents under
such plans, programs and arrangements, the Company shall pay or provide for
payment of such benefits and service credit for such benefits to the Executive
or the Executive’s dependents, beneficiaries or estate.  With respect to the Executive’s participation
in the life, accident, medical and dental insurance plans, programs and
arrangements as described in this subsection (c), the following conditions
shall be met:  (i) the amount
eligible for reimbursement or payment under any such plan, program or
arrangement in one calendar year may not affect the amount eligible for reimbursement
or payment under such plan, program or arrangement in any other calendar year
(except that the Company’s or Subsidiary’s medical and dental plans may impose
a limit on the amount that may be reimbursed or paid), (ii) any
reimbursement must be made on or before the last day of the calendar year following
the calendar year in which the expense was incurred, and (iii) the Executive’s
right to reimbursement or benefits under any such plans, programs and arrangements
may not be subject to liquidation or exchange for another benefit.

 

(d)           The
obligations of the Company to pay benefits pursuant to this Section 3 upon
an Executive’s Involuntary or Voluntary Termination during the term of this
Agreement shall survive the expiration of the term of this Agreement.

 

                4.             Litigation Expenses.  In the event of any litigation or other proceeding
between the Company and the Executive with respect to the subject matter of the
Plan and this Agreement and the enforcement of the Executive’s rights
there-under, the Company shall reimburse the Executive for all reasonable costs
and expenses relating to such litigation or other proceeding, including the
Executive’s reasonable attorney’s fees and expenses.  The obligation of the Company under this Section 4
shall survive the Termination for any reason of this Agreement.  The obligation of the Company to reimburse
the Executive under this Section 4 shall remain in effect during the term of this Agreement and for
a period of five years following the Termination for any reason of this
Agreement and
is subject to the following conditions:  (i) the
amount eligible for reimbursement under this Section 4 in one calendar
year may not affect the expenses eligible for reimbursement under this Section 4
in any other calendar year, (ii) any reimbursement must be made on or before
the last day of the calendar year following the calendar year in which the
expense was incurred, and (iii) the Executive’s right to reimbursement
under this Section 4 may not be subject to liquidation or exchange for
another benefit.

 

                5.             Payment Obligations.  The Company’s (or Employing Company’s)
obligation to pay (or cause to be paid to) the Executive the compensation and
to make the arrangements provided herein shall be absolute and unconditional
and shall not be affected by any circumstances, including, without limitation,
any setoff, counterclaim, recoupment, defense or other right which the Company
or any of its Subsidiaries may have against the Executive or anyone else.  All amounts payable by the Company or other
Employing Company hereunder shall be paid without notice or demand.  Each and every payment made 

 

 

hereunder
by the Company or other Employing Company shall be final and neither the
Company nor any of its Subsidiaries will seek to recover all or any part of
such payment from the Executive or from whomsoever may be entitled thereto, for
any reason whatsoever.  The Executive
shall not be required to mitigate the amount of any payment provided for in
this Agreement by seeking other employment or otherwise.

 

                6.             Agreement Binding on Successors.  The Company will 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, by express
written agreement in form and substance satisfactory to the Executive, to
assume and agree to perform and cause to be performed this Agreement in the
same manner and to the same extent that the Company would be required to perform
and cause it to be performed if no such succession had taken place.  As used in this Agreement, ‘the Company’
shall mean the Company as hereinbefore defined and any successor to its
business and/or assets as aforesaid which executes and delivers the agreement
provided for in this subsection or which otherwise becomes bound by all the
terms and provisions of this Agreement by operation of law.

 

                7.             Effect of Death or Incapacity of Executive on
Agreement.  This Agreement shall
inure to the benefit of and be enforceable by the Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.  If the Executive
should die while any amounts would still be payable to the Executive hereunder
if the Executive had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement
to the Executive’s devisee, legatee or other designee or, if there be no such
designee, to the Executive’s estate.

 

                8.             Notices. 
For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States registered mail,
return receipt requested, postage prepaid, addressed as follows:

 

If to the Executive:

 

 

If to the Company (or the
Employing Company), addressed to:

 

The
Empire District Electric Company

602
Joplin Street

Joplin,
Missouri 64801

Attention: Secretary

 

or to such other address as any
party may have furnished to the other in writing in accordance herewith, except
that notices of change of address shall be effective only upon receipt.

 

 

                9.             Miscellaneous. Nothing in this Agreement shall
give the Executive the right to be retained in the employment of the Employing
Company or affect the right of the Employing Company to dismiss the
Executive.  No provisions of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing, signed by the Executive and
such officer or officers as may be specifically designated by the Board of the
Company.  No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not set forth expressly in this
Agreement.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of Missouri.

 

                10.           Amendment. 
This Agreement may not be amended without the prior written consent of
the Company and the Executive.

 

                11.           Validity. 
The invalidity or unenforceability of any provisions of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.  Any provision in this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective only to the extent of such prohibition or unenforceability without
invalidating or affecting the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

 

                12.           Prior Agreements Superseded.  This Agreement supersedes any Severance Pay Agreement
previously entered into between the Company and the Executive pursuant to the
Plan.

 

                13.           Compliance with Code Section 409A.  Notwithstanding anything in this Agreement to
the contrary, (i) if the Executive is a “specified employee” (within the
meaning of Section 409A of the Code and the regulations thereunder and as
determined by the Company in accordance with said Section 409A) at the
time of the Executive’s separation from service (as defined below), the payment
of any benefit pursuant to Section 3(a)(i), 3(a)(ii) or 3(b) shall
be made no earlier than the date which is 6 months after the date of the
Executive’s separation from service (or, if earlier than the end of such
6-month period, the date of the Executive’s death), and (ii) the Executive
shall be deemed to have terminated from employment for purposes of this
Agreement if and only if the Executive has experienced a “separation from
service” within the meaning of said Section 409A and the regulations thereunder.  To the extent any payment under Section 3(a)(i),
3(a)(ii) or 3(b) is subject to the 6-month delay, such payment shall
be paid immediately after the end of such 6-month period (or the date of death,
if earlier).  The provisions of this
Agreement shall be interpreted and operated consistently with the requirements
of Section 409A of the Code and the regulations thereunder (to the extent
applicable).

 

 

IN WITNESS WHEREOF, the parties
have executed this Agreement as of the date first above set forth.

 

	
  THE 

  	
  EMPIRE DISTRICT ELECTRIC COMPANY 

  
	
   

  	
  on behalf of itself and the

  Employing Company, if

  any, specified above

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

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