Document:

Exhibit 10

Exhibit 10.1

 

THE SEIBELS BRUCE

GROUP, INC.

STOCK OWNERSHIP BONUS

PROGRAM

 

1.             PURPOSE OF THE PROGRAM

 

This Program

shall be known as The Seibels Bruce Group, Inc. Stock Ownership Bonus

Program.  The purpose of the Program is

to motivate the Company’s managers and align their interests with those of the

Company and its shareholders. 

Satisfaction of these guidelines is necessary in order to be awarded

Bonus Compensation.

 

2.             DEFINITIONS

 

2.1                                 Definitions.  Wherever the following capitalized terms are

used in this Program they shall have the meanings specified below.

 

a.                                       “Annual

Guideline Target” means the number of shares of Common Stock that a Participant

is required to acquire and hold under the Ownership Guidelines at the end of a

particular Program Year, determined as a percentage of the Cumulative Guideline

Target applicable to the Participant (with the number of shares rounded to the

nearest whole share).

b.                                      “Annual

Strategic Plan” means, for any Program Year, the projected Net Income target

for the Company, as approved by the Board.

c.                                       “Base

Salary” means the annual base salary of the Participant as in effect on the

last day of any applicable Program Year.

d.                                      “Board”

means the Board of Directors of the Company.

e.                                       “Bonus

Compensation” means, for any Program Year, for any Manager that is

participating in the Program, any annual bonus amount designated by the

Committee for purposes of the Program that is earned by such Manager during the

Program Year under the Program (and payable in the following Program Year).

f.                                         “Committee”

means the Compensation Committee of the Board.

g.                                      “Common

Stock” means the common stock of the Company, par value $1.00 per share.

h.                                      “Company”

means The Seibels Bruce Group, Inc., a South Carolina corporation.

i.                                          “Cumulative

Guideline Target” means the aggregate Fair Market Value of the Common Stock

that the Participant is required to acquire and hold under the Ownership

Guidelines at the end of the time period applicable under the Ownership

Guidelines for satisfaction of all requirement thereunder (with the number of

shares rounded to the nearest whole share)

j.                                          “Effective

Date” means the Effective Date of this Program, as defined in Section 6.1

hereof.

k.                                       “Employee”

means any person who the Committee determines to be an employee of the Company

or any Subsidiary.

l.                                          “Fair

Market Value” of a share of Common Stock as of a given date means the average

closing sales price of the Common Stock on the Over the Counter Board as

reflected on the composite index on the 10 trading days immediately preceding

the date as of which Fair Market Value is to be determined.  If the Common Stock is not listed on the

Over the Counter Board on the date as of which Fair Market Value is to be

determined, the Committee shall determine if good faith the Fair Market Value

in whatever manner it considers appropriate.

m.                                    “Manager”

means an Employee who the Chief Executive Officer, in his sole discretion,

determines to be a manager of the Company or any Subsidiary eligible to

participate in the Program.

n.                                      “Net

Income” means, for any applicable Program Year, the aggregate of all amounts

which, in accordance with generally accepted accounting principles, would be

included as net income (or net loss) on a consolidated statement of income of

the Company and its subsidiaries, including a reserve for Bonus Compensation,

for such period.

o.                                      “Ownership

Guidelines” means the stock ownership guidelines for Managers of the Company

adopted by the Committee for purposes of the Program, as may be amended by the

Committee from time to time.  The

Ownership Guidelines, as currently in effect, are attached hereto as Exhibit A.

p.                                      “Participant”

means a Manager who is eligible to receive Bonus Compensation.

q.                                      “Program”

means The Seibels Bruce Group, Inc., Stock Ownership Bonus Program as set forth

herein, as it may be amended from time to time.

r.                                         “Program

Year” shall mean any calendar year in which the Program is in effect.

s.                                       “Subsidiary”

means an entity that is wholly owned, directly or indirectly, by the Company,

or any other affiliate of the Company that is so designated, from time to time,

by the Committee.

 

 

3.             ADMINISTRATION OF THE PROGRAM

 

3.1                                 Committee

Members.  The Program will be

administered by the Committee.  The

Committee may exercise such powers and authority as may be necessary or

appropriate for the Committee to carry out its functions as described in the

Program.  No member of the Committee

will be liable for any action or determination made in good faith by the

Committee with respect to the Program.

3.2                                 Committee

Authority.  The Committee has

discretionary authority to interpret the Program, to make all factual

determinations under the Program, and to determine the terms and provisions of

the Bonus Compensation.  The Committee

has authority to prescribe, amend, and rescind rules and regulations relating

to the Program.  All interpretations,

determinations, and actions by the Committee will be final, conclusive, and

binding upon all parties.

3.3                                 Discretionary

Adjustments.  The Committee retains

the discretion to make adjustments from time to time in the Ownership

Guidelines and the degree of achievement of the Ownership Guidelines that is

applicable to any Participant.  The

basis for making such an adjustment shall include, but shall not be limited to

(i) unforeseen circumstances or unusual events that result in less than full

Bonus Compensation being paid for a Program Year and (ii) financial or other

personal hardship where fairness and equity would warrant adjustments.

 

4.             PARTICIPATION

 

4.1                                 Participation.  The Chief Executive Officer, in his

discretion, will select members of management that are eligible to participate

in the Program.  Any participant who has

not achieved his Cumulative Guideline Target as of the end of any Program Year

in accordance with the Ownership Guidelines will not be eligible to receive

Bonus Compensation for such Program Year.

4.2                                 Bonus

Compensation Program.  The Bonus

Compensation Program will pay Bonus Compensation to Managers to the extent that

the Company’s Net Income for any applicable Program Year exceeds the Annual

Strategic Plan.  Of the Net Income in

excess of the Annual Strategic Plan, one-half of that amount will be placed in

a profit sharing pool.  The Chief

Executive Officer will receive Bonus Compensation equal to twenty-five percent of

the aggregate bonus pool or 125% of his Base Salary whichever is less.  The Committee hereby delegates such

authority as is necessary for the Chief Executive Officer to distribute the

remainder of the profit sharing pool as Bonus Compensation to the Managers as

determined in his sole discretion.  No

Participant will receive Bonus Compensation greater than 125% of his or her

base salary.  All Bonus Compensation

will be subject to applicable tax and other withholding, and the Bonus

Compensation after such withholdings will be paid in cash.  All Bonus Compensation for any applicable

Program Year will be paid in March following such Program Year.  To receive Bonus Compensation, Participants

must be employed on the date Bonus Compensation is paid.  The Chief Executive Officer will determine

the exact date of payment of Bonus Compensation after giving consideration to

payroll periods and finality of the prior years’ financial statements as first

published by the Company for the applicable Program Year.

 

5.             GENERAL PROVISIONS

 

5.1                                 No

Assignment or Transfer; Beneficiaries. 

Awards under the Program shall not be assignable or transferable, unless

otherwise allowed by the Committee in its sole discretion.

5.2                                 Employment

or Service.  Nothing in the Program,

shall confer upon any Participant the right to continue in the capacity in

which he is employed by or otherwise serves the Company or any Subsidiary.

5.3                                 Tax

Withholding.  The Participant shall

be responsible for payment of any federal, state and local taxes or similar

charges required by law to be withheld from any Bonus Compensation, which shall

be paid by the Participant at the time that taxable income is recognized with

respect to the Bonus Compensation.

5.4                                 Program

Binding on Successors.  The Program

shall be binding upon the Company, its successors and assigns, and the

Participants, his heirs, administrators, estate, permitted transferees and

beneficiaries.

5.5                                 Construction

and Interpretation.  Whenever used

herein, nouns in the singular shall include the plural, and the masculine

pronoun shall include the feminine gender. 

Headings of Articles and Sections hereof are inserted for convenience

and reference and constitute no part of the Program.

5.6                                 Severability.  If any provision of the Program shall be

determined to be illegal or unenforceable by any court of law in any

jurisdiction, the remaining provisions hereof and thereof shall be severable

and enforceable in any other jurisdiction.

5.7                                 Governing

Law.  The validity and construction

of this Program shall be governed by the laws of the State of South Carolina.

 

6.             EFFECTIVE DATE, AMENDMENT AND TERMINATION

 

5.8                                 Effective

Date.  The Effective Date of the

Program shall be the date of adoption of the Program by the Board.

5.9                                 Amendment

and Termination.  The Board may from

time to time and in any respect, amend or modify or terminate the Program.

 

2

 

Appendix A

 

THE SEIBELS BRUCE

GROUP, INC.

STOCK OWNERSHIP

GUIDELINES

 

1.             PREAMBLE

 

The following

sets forth the Stock Ownership Guidelines that have been established by The

Seibels Bruce Group, Inc., (the “Company”) for managers of the Company that are

eligible to participate in The Seibels Bruce Group, Inc. Stock Ownership Bonus

Program (the “Program”).  The purpose of

the Program is to provide an incentive to the Company’s managers and align

their interests with those of the Company and its shareholders.  The Ownership Guidelines operate together

with, and are made a part of, the Program to provide a means of acquiring and

retaining such stock ownership.

 

2.             DEFINITIONS

 

The following

capitalized terms as used herein shall have the meanings specified below.  All other capitalized terms used herein,

unless expressly defined, shall have the meanings ascribed to them in the

Program.

 

(a)              “Guideline

Period” means the seven-year period commencing on either (a) January 1, 2002,

or (b) January 1st of the year in which Participation begins,

whichever is sooner.

(b)             “Guideline

Stock” means, for any Participant, (a) Common Stock registered in the name of

the Participant, or beneficially owned by the Participant, or (b) Common Stock

allocable to the Participant’s individual account under the South Carolina

Insurance Company Employees’ Profit-Sharing Savings Plan.

 

3.             CUMULATIVE GUIDELINE TARGETS

 

Participants

of the Program are required to hold shares of Guideline Stock having an

aggregate Fair Market Value equal to the Cumulative Guideline Target for such

participant as of the end of the Guideline Period, and at the end of each calendar

year thereafter.  The Cumulative

Guideline Target equals 100% of the Participant’s Base Salary.

 

4.             ANNUAL GUIDELINE TARGETS

 

Participants

are required to hold shares of the Guideline Stock having an aggregate Fair

Market Value equal to the Annual Guideline Target as of the end of each Program

Year during the Guideline Period.  For

purposes hereof, only Guideline Stock that satisfies the Holding Period shall

be considered in determining whether the Annual Guideline Target has been

satisfied.

 

The Annual

Guideline Targets for Participants are as follows:

 

	

  End of

  Program Year

  	

   

  	

  Annual Guideline Target

  
	

  First Year

  of Eligibility to Participate

  	

   

  	

  None

  
	

  1

  	

   

  	

  10% of

  Cumulative Target

  
	

  2

  	

   

  	

  25% of

  Cumulative Target

  
	

  3

  	

   

  	

  45% of

  Cumulative Target

  
	

  4

  	

   

  	

  65% of

  Cumulative Target

  
	

  5

  	

   

  	

  80% of

  Cumulative Target

  
	

  6

  	

   

  	

  100% of

  Cumulative Target

  

 

5.             AMENDMENTS AND ADJUSTMENTS

 

The Committee

reserves the right to amend or modify the Ownership Guidelines set forth herein

at any time and in whatever manner they deem appropriate, without requirement

of notice to or consent from any affected Participant.  The Committee has the discretionary

authority to make adjustments to the Ownership Guidelines as applied to

individual Participants for purposes of the Program.

 

3Retention Agreement

Exhibit

10a

 

Retention Agreement

(Duck Creek Business

Unit)

 

This Retention Agreement (“Agreement”) is made and effective as of

March 1, 2002, by and between Central Illinois Light Company, an Illinois

corporation (hereinafter referred to as the “Company”) and James L. Luckey  (hereinafter referred to as the “Key

Employee”).

 

Whereas, the Company has provided certain benefits to Key Employee

under the Involuntary Severance Pay Plan;

 

Whereas, in addition to the benefits provided under the Involuntary

Severance Plan, the Company has determined it should also enter into employment

retention agreements with certain key employees of the Company;

 

Whereas, James L. Luckey is a Key Employee of the Company;

 

Whereas, the Company is a subsidiary of CILCORP Inc.;

 

Whereas, should the possibility of a Change-in-Control arise, the

Company believes it to be in the best interests of the Company to minimize

concerns that the Key Employee might be distracted by the personal

uncertainties and risks created by the possibility of a Change-in-Control;

 

Now therefore, to assure the Company that it will have the continued

service and dedication of the Key Employee notwithstanding the possibility,

threat, or occurrence of a Change-in-Control of the Company or CILCORP Inc., to

induce the Key Employee to remain in the employ of the Company, and for other

good and valuable consideration, the Company and the Key Employee agree as

follows:

 

 

Section 1.               Definitions.

 

1.1           Acquiring Company.

 

For purposes of this Agreement, the “Acquiring Company” shall mean:

 

(a)  the

surviving corporation if the Company or CILCORP Inc.  merges or consolidates with or into another corporation in a

transaction in which neither The AES Corporation nor any of its wholly-owned

subsidiaries is the surviving corporation; or

 

(b)  the

corporation, person, other entity or group (other than The AES Corporation or

any of its wholly-owned subsidiaries) who acquires all or substantially all of

the Company’s assets or all or substantially all of the assets of the Company’s

Duck Creek Business 

 

 

Unit whether from the Company or a wholly-owned subsidiary of the

Company; or

 

(c)  the

surviving corporation if any wholly-owned subsidiary of the Company to which

the assets of the Company’s Duck Creek Business Unit has been transferred,

merges or consolidates with or into another corporation in a transaction in

which such wholly-owned subsidiary is not the surviving corporation.

 

1.2           Agreement

Period.  For purposes of this Agreement,

the Agreement Period shall mean the time beginning on the Effective Date and

ending on the earlier of (i) two (2) years from the date of a Change-in-Control

occurring on or after the Effective Date, or (ii) April 1, 2006.

 

1.3           Change-in-Control.  For purposes of this Agreement, a

“Change-in-Control” of the Company shall be deemed to have occurred:

 

(a)  if the

Company or CILCORP Inc. merges or consolidates with or into another corporation

in a transaction in which neither The AES Corporation nor any of its

wholly-owned subsidiaries is the surviving corporation; or

 

(b)  if the

Company sells or otherwise disposes of all or substantially all of the

Company’s assets to any corporation, person, other entity or group (other than

The AES Corporation or any of its wholly-owned subsidiaries); or

 

(c)  if any

corporation, person, other entity or group (other than The AES

Corporation,  or any of its wholly-owned

subsidiaries) becomes, directly or indirectly, the owner of fifty percent (50%)

or more of the voting stock of the Company or CILCORP Inc.; or

 

(d)  if the

Company sells or otherwise disposes of all or substantially all of the assets

of the Company’s Duck Creek Business Unit to any corporation, person, other

entity or group (other than The AES Corporation or any of its wholly-owned

subsidiaries); or

 

(e)  if any

wholly-owned subsidiary of the Company to which the assets of the Company’s

Duck Creek Business Unit has been transferred, merges or consolidates with or

into another corporation in a transaction in which neither The AES Corporation

nor any of its wholly-owned subsidiaries is the surviving corporation;  or

 

(f)  if any

wholly-owned subsidiary of the Company to which the Company’s Duck Creek

Business Unit has been transferred, sells or otherwise disposes of all or

substantially all of the assets of the Duck Creek Business Unit to any

corporation, person, other entity or 

 

2

 

group (other than The AES Corporation or any of its wholly-owned

subsidiaries); or

 

(g)  if any

corporation, person, other entity or group (other than The AES Corporation or

any of its wholly-owned subsidiaries) becomes, directly or indirectly, the

owner of fifty percent (50%) of the voting stock of any wholly-owned subsidiary

of the Company to which the assets of the Company’s Duck Creek Business Unit

has been transferred.

 

1.4           Effective Date.  For purposes of this Agreement, the

Effective Date shall mean March 1, 2002.

 

1.5           Involuntary

Severance Pay Plan.  For purposes of

this Agreement, the Involuntary Severance Pay Plan shall mean the Involuntary

Severance Pay Plan established by the Company, effective July 16, 2001.

 

 

Section 2.               Termination

of Employment.

 

2.1           Termination by the

Company or the Acquiring Company with Cause. 

For purposes of this Agreement, the Company or the Acquiring Company may

terminate the Key Employee’s employment during the Agreement Period for

Cause.  In the event of such

termination, the Company or the Acquiring Company shall give the Key Employee a

Notice of Termination in conformity with Section 4 herein.  For purposes of this Agreement, Cause shall

mean:

 

(a)  the Key

Employee’s continued failure to perform substantially his/her duties with the

Company or the Acquiring Company other than such failure resulting from

Disability (as hereinafter defined), as determined by the Chief Executive

Officer of the Company (the “CEO”), after a written demand for substantial

performance is delivered to the Key Employee by the CEO which specifically

identifies the manner in which the CEO believes that the Key Employee has not

substantially performed his/her duties; or

 

(b)  the Key

Employee’s engaging in illegal conduct or gross misconduct which the CEO

believes is materially and demonstrably injurious to the Company, The AES

Corporation (prior to the Change-in-Control) or the Acquiring Company.

 

Any act or failure to act, on the instructions of the CEO of the

Company or Acquiring Company or based on the advice of counsel for the Company

shall be conclusively presumed to be done, or omitted to be done, by the Key

Employee in good faith and in the best interests of the Company.

 

3

 

2.2           Termination by the

Key Employee for Good Reason.

 

The Key Employee’s employment with the Company or Acquiring Company

shall be deemed to be terminated by him/her for Good Reason if, during the

Agreement Period, the Key Employee terminates his/her employment relationship

with the Company or Acquiring Company for one of the following events:

 

(a)  there is a

reduction by the Company or the Acquiring Company in the Key Employee’s Annual

Compensation;

 

(b)  there is a

material reduction in the Key Employee’s benefits; or

 

(c)  the

Company or the  Acquiring Company

notifies the Key Employee that he/she will be required to change the Key

Employee’s principal place of employment during the Agreement Period to a

location that is more than 50 miles from the Key Employee’s principal place of

employment immediately prior to the Effective Date; or

 

(d)  the

Company or the Acquiring Company requires the Key Employee to travel on

business to  a substantially greater

extent than required immediately prior to the Effective Date.

 

In the event the Key Employee terminates his/her employment for Good

Reason, the Key Employee shall notify the Company in accordance with Section 4

within thirty (30) days of the date following the first occurrence of an event

described herein.   If the Key Employee

fails to notify the Company within thirty (30) days of the date following the

occurrence of an event described herein, then the Key Employee shall be deemed

to have accepted the event and shall be deemed to have waived his/her right to

terminate for Good Reason for that event. 

For purposes of this Agreement, Annual Compensation shall include Base

Salary as defined in Section 3.2, plus the annual target level of any bonus

established for the Key Employee for the fiscal year in which a

Change-in-Control occurs, assuming an achievement level of one hundred percent

(100%) of any target award established under an incentive compensation or bonus

or stock option plan of the Company in which the Key Employee participates, or

if there was no annual target level of any bonus established for the Key

Employee for the fiscal year in which a Change-in-Control occurs, then Annual

Compensation shall include Base Salary, plus the amount of any cash bonus and

the Black Scholes value of any stock options granted to the Key Employee for

performance/calendar year 2000.

 

4

 

2.3           Termination by

Retirement or Death.

 

For purposes of this Agreement, termination of the Key Employee’s

employment based on Retirement during the Agreement Period shall mean voluntary

termination in accordance with the Company’s retirement policy, including early

retirement, generally applicable to the Company’s salaried employees.  The Key Employee’s death during the

Agreement Period shall automatically terminate his/her employment.  In either the event of retirement or death,

the Company shall pay the Key Employee or the Key Employee’s beneficiary(ies)

any unpaid Base Salary, as defined in Section 3.2, and pay for any accrued,

unused vacation through the Date of Termination, at the salary rate then in

effect, plus all other amounts to which the Key Employee or the Key Employee’s beneficiary(ies)

are entitled under any retirement, survivor’s benefits, insurance, and other

applicable programs of the Company then in effect, and the Company shall have

no further obligations to the Key Employee and the Key Employee’s

beneficiary(ies) under this Agreement.

 

2.4           Termination by

Disability.

 

If the Company determines in good faith that the Key Employee’s

Disability has occurred during the Agreement Period (pursuant to the definition

of Disability as set forth in the Company’s Long-Term Disability Plan then in

effect), it may give the Key Employee written notice, in accordance with

Section 4 herein, of its intention to terminate the Key Employee’s

employment.  In such event, the Key

Employee’s employment with the Company will terminate within thirty (30) days

after written Notice of Termination is received by the Key Employee

(“Disability Effective Date”) and provided that within thirty (30) days after

receiving such notice, the Key Employee has not returned to the full-time

performance of his/her duties.  The Key

Employee shall receive his/her unpaid Base Salary, as defined in Section 3.2,

through the Disability Effective Date at which point the Key Employee’s

compensation and benefits, if any, shall be determined in accordance with the

Company’s retirement, insurance, and other applicable plans and programs in

effect on the Disability Effective Date, and the Company shall have no further

obligations to the Key Employee under this Agreement.

 

5

 

Section 3.               Obligations

of the Company following the Effective Date.

 

3.1           No Retention

Payment.

 

If, during the Agreement Period, the Key Employee voluntarily

terminates his/her employment with the Company, no payments under this

Agreement will be made.

 

3.2           Salary Continuation

Payment upon Termination.

 

If, during the Agreement Period, the Company or Acquiring Company

terminates the Key Employee’s employment for any reason other than for Cause,

Death, Disability or Retirement or if the Key Employee terminates employment

for Good Reason, the Key Employee shall receive, in addition to any salary,

benefit or compensation due the Key Employee as of the Termination Date, (a) an

amount equal to three (3) times the Key Employee’s Base Salary if the

Termination Date of the Key Employee falls within the period commencing on the

Effective Date and ending twelve (12) months following the date of a

Change-in-Control, and two (2) times the Key Employee’s Base Salary if the

Termination Date of the Key Employee falls within the period commencing with

the first  day following the anniversary

of the date of a Change-in-Control, but before the expiration of the Agreement

Period (collectively “Salary Continuation Payment”); and less (b) an amount

equal to any Severance Payments made to Key Employee under the Involuntary

Severance Pay Plan; and plus (c) an amount equal to 18 less the total number of

months for which the Key Employee is to receive Severance Payments under the

Involuntary Severance Plan, times the monthly premium charged to a terminated

Key Employee who selects continuation of coverage under the Company’s

comprehensive hospital and medical insurance plan (commonly known as “COBRA

payments.”)  The Company shall also

provide the Key Employee with years of service and compensation credits, along

with commensurate additional benefits, if any, the Key Employee would have

accrued during the Agreement Period, but for the termination, in any qualified

or non-qualified pension, retirement, supplemental benefit or compensation deferral

plan in effect on the Termination Date.  

For purposes of this Agreement, Base Salary shall only include the

annual base salary payable to the Key Employee (the greater of annual base pay

rate in effect during the month immediately preceding the Termination Date or

the annual base pay rate in effect during the month immediately prior to a

Change-in-Control), and shall not include the amount of any bonuses or stock

options payable to the Key Employee.

 

6

 

3.3           Timing of Payments.

 

All payments made by the Company pursuant to Section 3.2  shall be paid within thirty (30) days of the

Termination Date.  As a precondition to

receiving the payments, the Key Employee shall execute a release of all claims

in favor of the Company or Acquiring Company in a form satisfactory to it.

 

3.4           Tax Indemnity.

 

In the event it shall ultimately be determined by a court or the

Internal Revenue Service that any payment by the Company to or for the benefit

of the Key Employee (whether paid or payable pursuant to the terms of this

Agreement) would be subject to the excise tax (including penalties and

interest) imposed by Section 4999 of the Internal Revenue Code of 1986, as

amended, (the “Code”), then the Key Employee shall be entitled to receive a

lump sum cash payment sufficient to place the Key Employee in the same net

after-tax position as if the excise tax had not been imposed (a “gross up”

payment).  The determination of the

maximum gross up amount payable to the Key Employee shall be made by an

accounting firm designated by the Company and shall be paid to the Key Employee

within thirty (30) days of such determination.

 

 

Section 4.               Notice of

Termination.

 

Any termination by the Company or Acquiring Company for Cause or Disability

or by the Key Employee for Good Reason shall be communicated by a written

notice of termination (“Notice of Termination”) to the other party hereto and

shall mean a notice which shall indicate the specific termination provision in

this Agreement relied upon by the party, shall set forth in reasonable detail

the facts and circumstances claimed to provide a basis for termination of the

Key Employee’s employment under the provision indicated, and shall set forth

the date of termination (“Termination Date”). 

The failure by the Company or Acquiring Company, or Key Employee to set

forth in the Notice of Termination any fact or circumstance which contributes

to a showing of Cause or Good Reason shall not waive any right of the Company

or the Key Employee, respectively, from asserting such fact or circumstance in

enforcing the Key Employee’s or the Company’s rights hereunder.

 

 

Section 5.               Not a

Contract of Employment.

 

The employment-at-will relationship between the Key Employee and the

Company shall continue except as modified by this Agreement.

 

7

 

Section 6.               Governing

Law.

 

This Agreement shall be governed by, and construed in accordance with,

the laws of the State of Illinois.

 

 

Section 7.               Successors

and Assigns.

 

This Agreement shall be binding on the Company and any assignee or

successor in interest to the Company and of the Key Employee and his/her heirs,

assigns or legatees.

 

 

Section 8.               Arbitration

and Legal Fees.

 

The Key Employee and the Company agree to have any dispute or

controversy arising under or in connection with this Agreement settled by

arbitration using an Arbitration Panel. 

For the purposes of this Agreement, the term “Arbitration Panel” shall

mean three independent arbitrators, one of whom shall be selected by the

Company, one by the Key Employee and the third shall be selected by the two

other arbitrators.  In the event that

agreement cannot be reached on the selection of the third arbitrator, such arbitrator

shall be selected by the American Arbitration Association.  All arbitrators shall be selected from a

list provided by the American Arbitration Association, and all matters

presented to the Arbitration Panel shall be decided by majority vote.  The Key Employee and the Company agree that

any decision rendered in any such arbitration proceeding shall be final and

binding and that each of the parties waives their rights to seek remedies in

court, including the right to jury trial. 

All expenses of such arbitration, including the fees and expenses of the

counsel for the Key Employee and the Company shall be borne by the Company

and/or the Key Employee in the amount determined by the arbitrator.  Any such arbitration shall be held in the

City of Peoria, Illinois, unless the Company and Key Employee mutually agree on

another location.

 

 

Section 9.               Term of

Agreement.

 

The Agreement shall continue until, and terminate upon, the expiration

of the Agreement Period.

 

 

Section 10.             Notice.

 

For purposes of this Agreement, notices and all other communications

provided for in this Agreement shall be in writing and shall be deemed to have

been duly given when hand delivered or mailed by United States certified mail,

return receipt requested, postage prepaid, provided that all notices to the

Company be addressed to:

 

8

 

	

   

  	

  Central Illinois Light Company

  	

   

  
	

   

  	

  300 Liberty Street

  	

   

  
	

   

  	

  Peoria, Illinois 

  61602

  	

   

  
	

   

  	

  Attention: 

  President

  	

   

  

 

or to the Corporate Secretary of any successor company at its principal

place of business;

 

and if to the Key Employee addressed to:

 

	

   

  	

  James L. Luckey

  	

   

  
	

   

  	

  3343 Lexington Court

  	

   

  
	

   

  	

  Peoria, IL 

  61615

  	

   

  

 

 

Section 11.             Non-exclusive

Rights.

 

Nothing in this Agreement shall prevent or limit the Key Employee’s

continuing or future participation in any plan, program, policy or practice

provided by the Company or any of its subsidiaries for which the Key Employee

may qualify, nor shall it affect such rights as the Key Employee may have under

any contract or agreement with the Company or any of its subsidiaries.

 

 

Section 12.             Amendment

of Agreement.

 

During the Agreement Period, this Agreement may not be terminated, or

amended in any manner, which has an adverse effect on the Key Employee’s rights

hereunder without the Key Employee’s written consent.  Notwithstanding any other provision hereof, the Agreement may be

amended after a Change-in-Control occurs to the extent necessary in order to

obtain or maintain the status of the Company’s retirement plans as qualified

plans under Section 401(a) of the Code.

 

 

Section 13.             Entire

Agreement.

 

This Agreement constitutes the entire agreement between the parties and

supercedes all prior agreements, if any, understandings and arrangements, oral

or written, between the parties hereto, including the Company’s predecessors,

with respect to the subject matter hereof.

 

	

  KEY EMPLOYEE:

  	

   

  	

   

  	

  COMPANY:

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

  CENTRAL ILLINOIS LIGHT COMPANY

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

  By:

  	

   

  	

   

  	

   

  	

   

  
	

  James L. Luckey

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Leonard M. Lee

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Chairman of the Board

  	

   

  	

   

  	

   

  
												

 

9

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