Document:

Ex-10.19 Michal E. Rescoe Employment Contract

 

Exhibit
10.20

Tennessee Valley Authority, 400 West Summit Hill Drive, Knoxville, Tennessee 37902-1401

John E. Long, Jr.

Executive Vice President

Human Resources

April 21, 2004

Mr. Michael E. Rescoe

Chief Financial Officer and Executive

     Vice President, Financial Services

Tennessee Valley Authority

400 West Summit Hill Drive

Knoxville, Tennessee 37902-1401

Dear Mr. Rescoe:

This confirms our further discussions regarding your continuing employment as the Chief Financial
Officer and Executive Vice President, Financial Services, with TVA. You have expressed concern that
a change in the structure of the TVA Board and resulting selection of a Chief Executive Officer
(CEO) could lead to your termination.

To address your concern, this confirms that if there is a change in your reporting relationship
with the Board such that you report to a CEO or other similarly named executive, and if you are
asked to leave TVA employment or are asked to take a position with TVA other than your current
position as Chief Financial Officer and Executive Vice President, Financial Services, prior to July
10, 2008, TVA will pay you a lump-sum payment in an amount equal to two years’ of annual
compensation. This amount shall not be less than two times the annual amounts described in our
offer letter to you, as amended and dated June 19, 2003, and further amended hereby.

Annual compensation is defined for purposes of this document as base compensation (annual salary
and annual deferred compensation) and the value of TVA’s Executive Annual and Long-Term Incentive
Plans, measured at 100 percent achievement of goals.

Such lump-sum payment will be made in two equal installments by wire transfer into an account that
you designate: the first such installment will be made within 10 days of the effective date of
your termination and the second such payment will be made on the one year anniversary of your
termination date. In the event that you should die after you leave TVA employment but before full
payment, such payments shall not be reduced or offset in any way, and your legal beneficiary shall
direct the payment instructions under this agreement.

 

 

Mr. Michael E. Rescoe

Page 2

April 21, 2004

It is expressly understood that no payment will be made with respect to this agreement if
your termination arises as a result of your malfeasance or gross negligence which directly results
in significant economic harm to TVA.

If the foregoing correctly describes the terms of our discussion, please sign below my signature
and ahead of the Sequential Board Approval, at the indicated place below.

Sincerely,

	 	 	 	 	 	 	 
	/s/ John E. Long, Jr. 

John E. Long, Jr.

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Michael E. Rescoe 

Michael E. Rescoe

	 	 
	 	

 

Date
	 	 
	 
	 	 	 	 	 	 
	APPROVED SEQUENTIALLY BY:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Glenn L. McCullough, Jr. 

Glenn L. McCullough, Jr.

	 	 
	 	4-28-04

 
Date
	 	 
	 
	 	 	 	 	 	 
	/s/ Skila Harris 

Skila Harris

	 	 
	 	5/3/04

 
Date
	 	 
	 
	 	 	 	 	 	 
	/s/ Bill Baxter 

Bill Baxter

	 	 
	 	4-23-04

 
DateEx-10.21 Ashok S. Bhatnagar First Deferral Agreeme

 

Exhibit
10.21

DEFERRAL AGREEMENT

Ashok S. Bhatnagar

The TVA Board of Directors has approved your participation in TVA’s Long-Term
Deferred Compensation Plan (Plan) under the following terms:

	 	 	 
	Annual deferred compensation credit:

	 	$150,000
	Duration of deferral agreement

	 	5 Years 
	First compensation credit

	 	$150,000 (10/1/2004) 
	Second through fifth compensation credits

	 	$150,000 each (10/1/05, 10/1/06, 10/1/07, 10/1/08) 
	Total credits over deferral period

	 	$750,000
	Expiration date

	 	09/30/2009

Please read the following provisions carefully and indicate your
approval by signing at the designated place below.

 As a participant in the
Plan, I hereby agree to be bound by the following terms and conditions:

In consideration of this new agreement and in recognition of the new position to
which I have recently been selected, TVA agrees to transfer the balance of my current
Long Term Deferred Compensation Plan account to my Merit Incentive Supplemental
Retirement Income Plan (MISRIP) account and I agree that all rights and obligations
under the deferral agreement, which I signed on August 17, 2001, are hereby
extinguished.

Annual deferred compensation credits of $150,000 will be made to an account in
my name for a period of five years, beginning on October 1, 2004 and ending in fiscal
year 2008, provided that I remain employed by TVA through September 30, 2009. Upon
the expiration of this agreement, the entire amount credited to my account, including
interest or return as provided below, will be paid to me in a lump sum unless I elect
below to have the balance transferred to an account in TVA’s Merit incentive
Supplemental Retirement Income Plan (MISRIP).

I understand that I must be an employee of TVA at the time of the expiration of this
agreement, or no payments or transfers under the Plan will be made by TVA, and any
credits to my account will be extinguished. However, in the event that TVA terminates
my employment during the term of this agreement through no act or delinquency of my
own, this agreement is terminated as of the date of my termination and no further
credits will be made under it. Within 30 days of my termination, my account balance,
including interest or return as provided below, shall be paid to me in a lump sum. If
TVA terminates my employment for cause prior to the expiration of this agreement, no
payments will be made and my account balance will be extinguished. In the event of my
death during the term of this agreement, my account balance will be paid to the
person identified on my beneficiary designation form or, in the absence of such
designation, to my estate.

Interest will be credited to the balance reflected in my deferral account on the same
basis as interest is calculated and credited under MISRIP. In the alternative, I may
choose to have my balance adjusted based on the return of the funds I select under
the same conditions as are contained in MISRIP. I understand that I am solely
responsible for the risk associated with any return elections that I make.

The Plan may be amended or discontinued by the Board at any time. If the Board elects
to discontinue the Plan, any credits to my account as of the date of termination of
the Plan will be paid to me within 30 days of Plan termination. Please elect one of
the following options for payment upon expiration of this agreement:

	 	 	 	ü Balance of account to be paid to me in a lump sum
	 
	 	 	 	o Balance of account to be transferred to TVA MISRIP account

I understand that nothing contained in this agreement shall be construed as
conferring the right to continue in the employment of TVA as an executive or in
any other capacity and that the payment election I have made is final (not revocable).

	 	 	 	 	 	 	 
	/s/
Ashok S. Bhatnagar 

Participant

	 	 	 	9/17/04 

Date
	 	 
	 
	 	 	 	 	 	 
	/s/
W. Anthony Conkin for
John E. Long, Jr. 

EVP, Human Resources

	 	 	 	9/28/04 

DateEx-10.22 Ashok S. Bhatnagar Second Deferral Agreem

 

Exhibit
10.22

DEFERRAL AGREEMENT

Ashok S. Bhatnagar

The TVA Board of Directors has approved your participation in TVA’s Long-Term Deferred
Compensation Plan (Plan) under the following terms:

	 	 	 
	Annual deferred compensation credits:

	 	Up to $50,000
	Duration of deferral agreement:

	 	4 years 
	First compensation credit:

	 	Up to $50,000 fully vested and credited effective 09/30/2004 
	Second compensation credit:

	 	Up to $50,000 fully vested and credited effective 09/30/2005 
	Third compensation credit:

	 	Up to $50,000 fully vested and
credited effective 09/30/2006 
	Fourth compensation credit:

	 	Up to $50,000 fully vested and credited effective 09/30/2007 
	Total credits over deferral period:

	 	Up to $200,000 
	Expiration date:

	 	09/30/2007 

Please read the following provisions carefully and indicate your approval by signing at
the designated place below.

As a participant in the Plan, I hereby agree to be bound by the following terms and
conditions:

Annual deferred compensation credits as stated above will be made to my deferred
compensation (MISRIP) account for a period of four years, beginning on September
30, 2004, and ending in fiscal year 2007, provided that I remain employed by TVA
through September 30, 2007. The actual amount credited each year will be based on
the achievement of milestone performance objectives established for the Browns
Ferry Unit 1 recovery project at the beginning of each year. The actual amount
credited shall not exceed the maximum stated above. Credits will be fully vested
at the time each credit is made. If the Browns Ferry Unit 1 recovery project is
completed prior to September 30, 2007, all remaining unpaid compensation credits,
based on the maximum(s) stated above, will be credited to my deferred
compensation account and vested immediately.

I understand that I must be an employee of TVA on the effective date of each
credit or no payments under the Plan will be made by TVA. However, in the event
that my employment with TVA is terminated for any reason, this agreement is
terminated as of the date of my termination and no further credits will be made
under it. In the event of my death during the term of this agreement, the
agreement will be extinguished and no further credits will be made.

The Plan
may be amended or discontinued by the Board at any time.

I understand that nothing contained in this agreement shall be construed as
conferring the right to continue in the employment of TVA as an executive or in
any other capacity and that the payment election I have made is final (not
revocable).

	 	 	 	 	 	 	 
	/s/
Ashok S. Bhatnagar 

Participant

	 	 	 	9/17/04 

Date
	 	 
	 
	 	 	 	 	 	 
	/s/
W. Anthony Conkin for
John E. Long, Jr. 

Chief Officer

	 	 	 	9/28/04 

Date

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