SEC Contract Filing

Filing Date: 2015-02-26

Document Content:
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<TYPE>EX-10
<SEQUENCE>10
<FILENAME>ex10_67.htm
<DESCRIPTION>EXHIBIT 10.67
<TEXT>

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<TITLE>Exhibit 10.67</TITLE>

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<P style="line-height:16pt; margin:0px; font-size:14pt" align=right><B>Exhibit 10.67</B></P>

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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-family:Times New Roman Bold; font-size:12pt" align=center><B>SEMPRA ENERGY<BR>
SEVERANCE PAY AGREEMENT</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt"><B>THIS AGREEMENT </B>(this &#147;<U>Agreement</U>&#148;), dated as of February 18, 2013 (the &#147;<U>Effective Date</U>&#148;), is made by and between SEMPRA ENERGY, a California corporation (&#147;<U>Sempra Energy</U>&#148;), and John C. Baker (the &#147;<U>Executive</U>&#148;).</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt"><B>WHEREAS</B>, the &nbsp;Executive is currently employed by Sempra Energy or a direct or indirect subsidiary of Sempra Energy (Sempra Energy and its subsidiaries are hereinafter collectively referred to as the &#147;<U>Company</U>&#148;) as Senior Vice President, Strategic Planning and Technology; and</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt"><B>WHEREAS, </B>Sempra Energy and the Executive desire to enter into this Agreement; and</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt"><B>WHEREAS</B>, the Board of Directors of Sempra Energy (the &#147;<U>Board</U>&#148;) has authorized this Agreement.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt"><B>NOW, THEREFORE</B>, in consideration of the premises and mutual covenants herein contained, the Company and the &nbsp;Executive hereby agree as follows:</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:96px; font-size:12pt"><B>Section 1.</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:192px; font-size:12pt"><U>Definitions</U>. &nbsp;For purposes of this Agreement, the following capitalized terms have the meanings set forth below:</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt">&#147;<U>Accounting Firm</U>&#148; has the meaning assigned thereto in Section 8(d) hereof.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt">&#147;<U>Accrued Obligations</U>&#148; means the sum of (A) the Executive&#146;s Annual Base Salary through the Date of Termination to the extent not theretofore paid, (B) an amount equal to any annual Incentive Compensation Awards earned with respect to fiscal years ended prior to the year that includes the Date of Termination to the extent not theretofore paid, (C) any accrued and unpaid vacation, if any, and (D) reimbursement for unreimbursed business expenses, if any, properly incurred by the Executive in the performance of his duties in accordance with policies established from time to time by the Board, in each case to the extent not theretofore paid. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt">&#147;<U>Affiliate</U>&#148; has the meaning set forth in Rule 12b-2 promulgated under the Exchange Act.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt">&#147;<U>Annual Base Salary</U>&#148; means the &nbsp;Executive&#146;s annual base salary from the Company.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt">&#147;<U>Asset Purchaser</U>&#148; has the meaning assigned thereto in Section 16(e).</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt">&#147;<U>Asset Sale</U>&#148; has the meaning assigned thereto in Section 16(e).</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt">&#147;<U>Average Annual Bonus</U>&#148; means the average of the annual bonuses from the Company earned by the Executive with respect to the three (3) fiscal years of the Company immediately preceding the Date of Termination (the &#147;<U>Bonus Fiscal Years</U>&#148;); <I>provided</I>,<I> however</I>, that, if the Executive was employed by the Company for less than three (3) Bonus Fiscal Years, &#147;<U>Average Annual Bonus</U>&#148; means the average of the annual bonuses (if any) from the Company earned by the Executive with respect to the Bonus Fiscal Years during which the Executive was employed by the Company; and, <I>provided, further</I>, that, if the Executive was not employed by the Company during any of the Bonus Fiscal Years, &#147;<U>Average Annual Bonus</U>&#148; means zero.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:96px; font-size:12pt">&#147;<U>Cause</U>&#148; means: &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:96px; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:144px; font-size:12pt">Prior to a Change in Control, (i) the willful failure by the &nbsp;Executive to substantially perform the &nbsp;Executive&#146;s duties with the Company (other than any such failure resulting from the &nbsp;Executive&#146;s incapacity due to physical or mental illness, (ii) the grossly negligent performance of such obligations referenced in clause (i) of this definition, (iii) the &nbsp;Executive&#146;s gross insubordination; and/or (iv) the &nbsp;Executive&#146;s commission of one or more acts of moral turpitude that constitute a violation of applicable law (including but not limited to a felony) which have or result in an adverse effect on the Company, mon