Document:

Unassociated Document

Exhibit 10.13 

 

 

CONTRACT FOR SERVICES

 

 

This Contract for Services (“Contract”) is made between Larry F. Altenbaumer (“Contractor”) and Illinois Power Co., an Illinois Corporation (the “Company”), and is executed this 27 th day of January, 2004. This Contract is effective April 1, 2004 (the “Effective Date”).

 

1.    Term of Agreement. The term of this Contract shall commence on the Effective Date and end on March 31, 2005 (the “Termination Date”). Either party may terminate this Contract prior to the Termination Date, subject to the conditions specified in Section 6 below.

 

2.    Duties of Contractor. Contractor will provide consulting services to the Company on an as-needed basis to be determined by the Company. Contractor shall not have an office at the Company’s corporate offices in Decatur, Illinois, but shall have access to a guest office when his presence at that location is necessary. Contractor will report directly to R. Blake Young (“Young”), Executive Vice President, Administration and Technology, of the Company’s Parent, Dynegy Inc. (“Dynegy”), and will receive assignments from Young or any employee of the Company or Dynegy designated by Young. Contractor’s primary focus will be to actively assist Dynegy, at Dynegy’s direction and request, in any reasonable manner possible in meeting Dynegy’s business objectives with respect to the disposition, retention, or restructuring of the Company, including, but not limited to, lobbying on behalf of the Company or Dynegy with entities responsible for making public policy and advocating Dynegy’s business objectives in the community and in the political arena. Contractor shall observe and comply with all lawful and reasonable directions and instructions by and on the part of Dynegy’s management, endeavor to promote the interests of Dynegy, and do nothing that may cause or be likely to cause any loss or damage to Dynegy in business, reputation or otherwise. When performing services under this Contract, Contractor shall abide by all provisions of Dynegy’s Code of Business Conduct and Ethics (the “Code”), as may be amended from time to time, which is incorporated herein by reference and attached hereto as Exhibit A. Dynegy will provide Contractor with any new versions of the Code that may be adopted during the term of this Contract. Contractor’s failure to achieve any specified result in the performance of services under this contract does not constitute a breach of this Agreement or release the Company from its obligation to make the payments required hereunder. In connection with the performance of services under this Contract, Contractor shall be indemnified on the terms provided in Section 5 of Contractor’s employment agreement with Dynegy, Inc., effective December 20, 1999, which Section 5 is hereby incorporated by reference.

 

3.    Compensation. The Company shall pay Contractor, on March 31, 2005, $357,500.00, for services rendered under the Contract and to assist with outplacement after the Termination Date. 

	
 

	 	 	 
	

	 

4.    Consulting Relationship and Taxation. Contractor is an independent contractor and, as a result, the Company will not withhold any monies from Contractor’s compensation for the purposes of any United States’ or other country’s federal or state taxing authority. Contractor is solely responsible for any tax liability in whatever country or nation arising from the compensation the Company pays Contractor under the terms of this Contract. Contractor agrees that, in the event it is determined by some taxing authority that the payments under this Contract are subject to any United States or foreign tax liability, he shall be fully responsible for said liability and hereby agrees to fully indemnify and hold the Company harmless for any amounts determined to be due and owing by Contractor, including any fines, interest or penalties.

 

5.    Expenses. The Company agrees to reimburse Contractor for all reasonable and customary travel and other expenses related to the performance of his duties under the Contract.

 

6.    Termination of the Contract. Between the Effective Date and the Termination Date, either the Company or Contractor may terminate this Contract with thirty (30) days written notice to the other party. If the Company terminates the Contract under this Section 6, Contractor will be entitled to a payment of all monies owed to Contractor as if the term of the Contract had been completed. Such compensation will be paid to Contractor in one lump sum on the date set forth in Section 3. If Contractor terminates the Contract under this Section 6, Contractor will not be entitled to any further compensation except that which was earned prior to the date of the written notice of termination. The amount earned will be calculated by taking the amount set forth in Section 3, dividing that amount by 52 weeks, and multiplying that amount by the number of weeks Contractor provided services under the Contract up to the date of written notice of termination. Such compensation will be paid to Contractor in one lump sum on the 15 th day of the month following the expiration of the thirty (30) day notice period; provided, however, that Contractor may, by written notice to the Company, elect to defer payment of such compensation to March 31, 2005. In the event of Contractor’s death or disability that precludes further performance under the Contract, this Contract shall be deemed to have been terminated by Contractor as of the date of death or disability and governed by the language of this Section 6.

 

7.    Contractor’s Confidentiality Agreement. Contractor acknowledges that the Company has established a valuable and extensive trade in the services it provides, which has been developed at considerable expense to the Company. Contractor agrees that, by virtue of this Contract, Contractor will have access to certain information and knowledge of the business and operations of the Company and Dynegy that are confidential and proprietary in nature.

 

Contractor agrees that he will not at any time during the term of the Contract, or thereafter, disclose to others, use, copy or permit to be copied any secret or confidential information of the Company (whether or not developed by Contractor) without the prior written consent of Young. The term “secret or confidential information of the Company” (sometimes referred to herein as “Confidential Information”) shall include, without limitation, the Company’s (and Dynegy’s) plans; strategies; potential acquisitions; costs; prices; systems for buying, selling, and/or trading natural gas, natural gas liquids, crude 

	
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oil, coal, electricity, bandwidth and communications services; client lists; pricing policies; financial information; the names of and pertinent information regarding suppliers; computer programs; policy or procedure manuals; training and recruiting procedures; accounting procedures; the status and content of the Company’s contracts with its suppliers or clients; or servicing methods and techniques at any time used, developed, or investigated by the Company or Dynegy; before or during the term of the Contract, to the extent any of the foregoing are (i) not generally available to the public and (ii) maintained as confidential by the Company or Dynegy. Contractor further agrees to maintain in confidence any confidential information of third parties received as a result of this Contract.

 

Contractor further agrees that any materials and/or information developed by him for the Company’s or Dynegy’s use during the term of this Contract are the sole and exclusive property of the Company or Dynegy. Any materials or information that are the property of the Company or Dynegy shall be returned to the Company or Dynegy immediately upon termination of this Contract or upon oral or written request. Contractor further agrees that any use of said materials or information subsequent to termination of this Contract or a request of return shall constitute a violation of this Contract. Contractor agrees that, upon termination of this Contract, he shall promptly return any and all documents containing the above information, knowledge or data, or relating thereto, to the Company. Contractor acknowledges that the Confidential Information is created at substantial cost and expense to the Company and Dynegy and that unauthorized use or disclosure would cause irreparable injury to the Company and Dynegy.

 

8.    Agreement Not to Compete or Seek Conflicting Employment. During the term of this Contract, Contractor shall not provide his services, whether by employment or consulting arrangement, to any federal, state or local governmental entity, or any utility, natural gas provider, or electric generation company doing business in the State of Illinois, without the prior written permission of Young. Should Contractor fail to seek and obtain such permission prior to the commencement of such services, then, notwithstanding Section 6 of this Contract, this Contract shall be immediately terminated and all compensation set forth in Section 3 of this Contract shall be forfeited. Should such permission be granted, Contractor shall be deemed to have terminated the Contract pursuant to Section 6 of this Contract as of the date permission is granted, which date shall serve as the date of written notice of termination. 

 

9.    Agreement Not to Solicit or Recruit Employees of the Company. During the term of this Contract and for 12 months thereafter, Contractor agrees to refrain from soliciting, recruiting, encouraging, or initiating contact with any of the Company’s employees in any way for the purpose of offering them employment, either as an employee or as a contractor or adviser, with Contractor, directly or indirectly, for himself or with or for others. During the term of this Contract and for 12 months thereafter, Contractor further agrees to refrain from authorizing, directing, or advising any third persons or entities to solicit, recruit, encourage, or initiate contact with any of the Company’s employees in any way for the purpose of offering them employment, either as an employee or as a contractor or adviser, with Contractor, directly or indirectly, for himself or with or for others. 

	
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10.    Cessation of Business. Notwithstanding any provisions in this Contract to the contrary, in the event that the Company shall cease operating its business, then this Contract shall terminate as of the last day of the month in which the Company ceases operations, with the same force and effect as if such last day of the month originally was set as the Termination Date. A merger, acquisition, sale, or similar corporate restructuring under which the principal business of the Company is continued shall not be considered cessation of the business of the Company.

 

11.    Dispute Resolution. Contractor hereby agrees that any dispute relating to this Contract or to the breach of this Contract arising between Contractor and the Company shall be first submitted to mediation before a mediator mutually selected and agreed upon by the parties. The mediation shall take place in Decatur, Illinois. Any settlement resolving such a dispute, at mediation or otherwise, shall be final and binding upon the parties. Should a dispute related to the Contract fail to resolve at mediation, the parties will submit the matter to arbitration in accordance with the arbitration rules of the American Arbitration Association. The arbitration proceeding, including the rendering of an award, shall take place in Decatur, Illinois. All fees and expenses associated with the arbitration shall be allocated by the arbitrator(s). The award of the arbitrator shall be final and binding upon the parties without appeal or review except as permitted by the Federal Arbitration Act.

 

12.    Waiver of Breach of Agreement. If either party waives a breach of this Contract by the other party, that waiver will not operate or be construed as a waiver of any other or subsequent breaches.

 

13.    Waiver of Implied Warranties and Representations. The terms, conditions, representations, warranties, covenants and provisions applicable to this Contract are set forth expressly and completely in this Contract. The parties hereby waive, disclaim and negate for all purposes (i) any other term, condition, representation, warranty, covenant and/or provision of any kind hereunder , whether implied, statutory, or other; and (ii) any right of quantum meruit in connection with any work or service provided hereunder or contemplated hereby.

 

14.    Notice. Any notice given by the Company to Contractor under this Contract shall be sufficient if in writing and either (1) hand delivered to Contractor, or (2) mailed, return receipt requested, to Contractor’s last address on the records of the Company. Any notice given by Contractor to the Company under this Contract shall be sufficient if in writing and either (1) hand delivered to Young, or (2) mailed, return receipt requested, to Young as follows: 

R. Blake Young 

Executive Vice President, 

Administration and Technology, 

Dynegy Inc. 

1000 Louisiana, Suite 5800 

Houston, TX 77002 

	
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15.    Assignment. This Contract is assignable by either party only with the express written consent of the other party.

 

16.    Severability. Any provisions of this Contract prohibited by or unenforceable under any applicable law of any jurisdiction shall as to such jurisdiction be deemed ineffective and deleted from this Contract without affecting any other provision of this Contract or the effectiveness of such provision in any jurisdiction in which it is not prohibited or unenforceable. It is the desire of the parties hereto that this Contract be enforced to the maximum extent permitted by law, and should any provision contained herein be held unenforceable, the parties hereby agree and consent that such provision shall be reformed to make it a valid and enforceable provision to the maximum extent permitted by applicable law.

 

17.    Survival of Provisions. The provisions of Sections 7, and 11 through 19, inclusive, of this Contract shall survive termination of this agreement and shall be enforceable by the Company and the Contractor for a period of two years after such termination, regardless of the circumstances of such termination, except that the provisions of Section 7 shall survive forever and the provisions of Section 9 shall survive according to Section 9’s terms.

 

18.    Choice of Law and Forum. This Contract shall be construed and governed by the laws of the State of Illinois. Any and all matters of dispute arising out of, or in any way connected with, this Contract or the relationship between Contractor and the Company, except arbitration matters governed by Section 11 above, shall be subject to determination only by the Courts of and for Decatur, Illinois. Contractor and the Company hereby consent and submit to the exclusive jurisdiction of the Courts of and for Decatur, Illinois.

 

19.    Entire Agreement and Amendment. This Contract supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the Company’s retention of Contractor. This Contract contains the entire agreement of the parties with respect to the subject matter covered hereby and may be amended, waived or terminated only by an instrument in writing executed by both parties hereto.

 

20.    Binding on Successors and Assigns. This Contract is binding on the Company and its successors and assigns. 

Contractor 

 

	
/s/ Larry F. Altenbaumer 
	
January 27, 2004 

	
Larry F. Altenbaumer 
	
 

* * * 

	
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Illinois Power Company 

	
/s/ Bruce A. Williamson 
	
January ____, 2004 

	
By: Bruce A. Williamson 
	
 

	
Page 6Exhibit 10.14

EXHIBIT 10.14

	 	Andrea A. Lang
Senior Vice President
Human Resources

 

Dynegy Inc.
1000 Louisiana Street, Suite 5800
Houston, Texas 77002
Phone 713.507.6578 • Fax 713.767.8371
www.dynegy.com
 

Personal & Confidential 

DYNEGY        

February 26, 2003 

Mr. Shawn E. Schukar 

1171 Woodridge Court 

Decatur, IL 62526 

Dear Shawn: 

On behalf of Illinois Power Company and Dynegy Inc. (herein together, the "Company"), I am pleased to confirm the terms and conditions of your employment at Illinois Power Company in the position of Vice President, Customer and Energy Supply Management, as summarized in this letter. In addition to the terms outlined herein, your employment is governed by the Company's policies and procedures generally applicable to employees of Illinois Power Company. 

		
1. 
	
TITLE. Your title shall be Vice President, Illinois Power Company. You will report to the President of Illinois Power Company. Your duties will include such lawful duties as may be delegated from time to time by the President of Illinois Power Company. You shall devote your time, energy, and skill to the performance of your duties for the Company and will exercise diligence and reasonable care in the performance of such duties. You will be employed in Decatur, Illinois.

		
 
	
 

		
2. 
	
BASE SALARY. Your annual salary will be $175,000 payable in accordance with the Company's payroll guidelines. Your salary will be reviewed each year based on corporate policy. There is no guarantee of a salary increase at any time.

		
 
	
 

		
3. 
	
INCENTIVE COMPENSATION PLAN. You will be eligible to participate in the Dynegy Inc. Incentive Compensation Plan (ICP). Under the ICP, Dynegy rewards eligible employees for the value of their contributions to the Company by linking both relative employee performance and market competitiveness to pay. Incentive awards will be paid to eligible employees based on overall company, business unit, and individual performance with emphasis placed on competitive market reward levels and with differentiation made for stronger performers. Your target bonus is 40% of your base salary, dependent upon certain financial and performance objectives, determined in accordance with such program, and by the Board of Directors of Dynegy Inc.: however, there is no guarantee of a bonus payment. Award ranges are subject to change based on market competitive norms and the discretion of the Board. You must be an active employee on payroll on the date the awards are distributed to receive an award. It is mutually understood that termination of employment results in your forfeiture of an individual incentive compensation award.

 

	 
	 	 	 
	

	 

 

		
4. 
	
LONG TERN INCENTIVE PLAN. You will also be eligible to participate in Dynegy's Long Term Incentive Program that provides for stock option awards of Class A Common Stock of the Company. The value of any such award will be in parity with the awards granted to similarly situated employees who also report directly to the President of Illinois Power Company. Such option grants will be made dependent upon a number of factors, including but not limited to the Company and your financial and performance objectives, determined in accordance with the provisions of the annual stock option award program, and by the Board. There is no guarantee of a grant of options at any time. Any options granted to you will have an exercise price equal to the highest closing price reported on the NYSE for Class A Common Stock of the Company on the date of grant in accordance with the requirements and provisions of the Company's currently applicable option grant program. Any options granted during the term of this Agreement are subject to the vesting, forfeiture and other terms and conditions of the option grant program under which they were granted. You recognize that any value of an award of "market" options is a projected value, which is subject to the future performance of the Company stock, and that there is no guarantee that the actual value of such options will achieve that value

		
 
	
 

		
5. 
	
SEVERANCE AND RELOCATION. If, following a change in control if Illinois Power Company (as defined in this paragraph), the Company involuntarily terminates your employment for any reason other than cause, or you voluntarily terminate your employment as the result of a reduction in your base salary or you are required to relocate outside the Decatur, Illinois metropolitan area, you will receive severance pay in an amount equal to the greater of the amount you would be eligible to receive under the Dynegy Inc. Executive Severance Plan in effect on the date of such termination of employment or 1.5 times your base salary and ICP target on the date of such termination of employment. In addition, you will remain eligible for any benefits other than severance pay for you would otherwise have been eligible under the Dynegy Inc. Executive Severance Plan in effect on the date of such termination of employment. For the purposes of this paragraph, a "change in control" of Illinois Power Company shall mean the sale or disposition of all or substantially all of Illinois Power Company stock or assets by Dynegy Inc. to a person or group or entity that is not an affiliate of the Company. However, a "change in control" shall not be deemed to have occurred if the Company sells all or substantially all of the assets of Illinois Power Company but you are offered a "comparable position" with the Company or with an affiliate or subsidiary of the Company. 

		
 
	
 

		
6. 
	
BENEFIT PLAN PARTICIPATION. You shall be eligible to participate in Illinois Power Company's benefits programs for officers. 

		
 
	
 

		
7. 
	
“AT WILL" EMPLOYMENT”. Your employment with the Company "at will." This means that you are free to leave your employment at any time, with or without cause or notice, and that the Company is free to terminate your employment at any time, 

 

	 
	 	 	 
	

	 

 

	 	 	 
	 	 	with or without cause or notice. This offer does not constitute a contract of employment with Dynegy Inc. or Illinois Power Company and no one other than the Chief Executive Officer of Dynegy Inc. has the authority to change the at will nature of your employment. Further, any change to your employment status must be made in writing. No implied contract about any term or condition of your employment is, or can be, established by this offer, or any other statement, action, policy or practice.

 

	
 
	
Sincerely, 

	
 
	

	
 
	
/s/ Andrea A. Lang 

	 	

	
 
	
Andrea A. Lang 

	
 
	
Senior Vice President, Human Resources 

	
 
	
Dynegy Inc. 

Accepted and Agreed to this 6 day of March, 2003. 

/s/ Shawn E. Schukar 

Employee Signature 

*Your response is requested by March 14, 2003. If you do not respond by this date, this offer expires.

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