Exhibit 10.07
SCANA
CORPORATION
SUPPLEMENTARY EXECUTIVE
BENEFIT PLAN
as established effective as
of
January 1, 2009
SUPPLEMENTARY EXECUTIVE
BENEFIT PLAN
TABLE OF
CONTENTS
Page
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SECTION
1. ESTABLISHMENT AND
PURPOSE
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1
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1.1
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ESTABLISHMENT OF THE PLAN
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1
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1.2
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DESCRIPTION OF
THE PLAN
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1
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1.3
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PURPOSE OF THE
PLAN
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1
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SECTION
2. DEFINITIONS
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2
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2.1
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DEFINITIONS
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2
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2.2
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GENDER AND
NUMBER
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6
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SECTION
3. ELIGIBILITY AND
PARTICIPATION
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7
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3.1
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ELIGIBILITY
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7
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3.2
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TERMINATION AND
PARTICIPATION
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7
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SECTION
4. DEFERRALS
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8
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4.1
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RIGHT TO SEBP
BENEFITS
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8
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4.2
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QUALIFYING
TERMINATION
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8
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4.3
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DESCRIPTION OF
SEBP BENEFITS
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8
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4.4
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TERMINATION FOR
TOTAL AND PERMANENT DISABILITY
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9
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4.5
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TERMINATION FOR
RETIREMENT OR DEATH
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9
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4.6
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TERMINATION FOR
CAUSE OR BY PARTICIPANT OTHER THAN FOR GOOD REASON
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9
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4.7
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NOTICE OF
TERMINATION
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9
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4.8
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PARTICIPANT’S OBLIGATION
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9
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4.9
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TERMINATION FOR
JUST CAUSE
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10
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4.10
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GROSS-UP
PAYMENT
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10
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4.11
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TAX
COMPUTATION
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10
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4.12
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FORM AND TIMING
OF SEBP BENEFITS
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10
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4.13
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NO SUBSEQUENT
RECALCULATION OF PLAN LIABILITY
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11
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4.14
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BENEFITS UNDER
OTHER PLANS
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11
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SECTION
5. BENEFICIARY
DESIGNATION
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12
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5.1
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DESIGNATION OF
BENEFICIARY
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12
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5.2
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DEATH OF
BENEFICIARY
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12
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5.3
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INEFFECTIVE
DESIGNATION
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12
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SECTION
6. GENERAL PROVISIONS
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13
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6.1
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CONTRACTUAL
OBLIGATION
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13
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6.2
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UNSECURED
INTEREST
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13
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6.3
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“RABBI” TRUST
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13
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6.4
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SUCCESSORS
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13
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6.5
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EMPLOYMENT/PARTICIPATION RIGHTS
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13
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6.6
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NONALIENATION
OF BENEFITS
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14
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6.7
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SEVERABILITY
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14
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6.8
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NO INDIVIDUAL
LIABILITY
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14
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6.9
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APPLICABLE
LAW
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14
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6.10
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LEGAL FEES AND
EXPENSES
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15
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6.11
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ARBITRATION
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15
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SECTION
7. PLAN ADMINISTRATION, AMENDMENT AND
TERMINATION
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16
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7.1
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IN
GENERAL
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16
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7.2
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CLAIMS
PROCEDURE
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16
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7.3
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FINALITY OF
DETERMINATION
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16
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7.4
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DELEGATION OF
AUTHORITY
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16
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7.5
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EXPENSES
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16
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7.6
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TAX
WITHHOLDING
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16
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7.7
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INCOMPETENCY
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16
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7.8
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NOTICE OF
ADDRESS
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17
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7.9
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AMENDMENT AND
TERMINATION
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17
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SECTION
8. EXECUTION
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18
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SUPPLEMENTARY EXECUTIVE
BENEFIT PLAN
SECTION
1. ESTABLISHMENT AND PURPOSE
1.1
Establishment of the Plan . SCANA Corporation
established a plan for certain executives to be known as the
“SCANA Corporation Supplementary Executive Benefit
Plan” (the “Plan”), effective as of July 1,
2001. The Plan was amended and restated, effective as of
January 1, 2007. The Plan is hereby amended and restated
as provided herein, effective as of January 1, 2009, to comply with
the requirements of Code Section 409A.
1.2
Description of the Plan . This Plan is intended
to constitute a severance benefits plan which is unfunded and
established primarily for the purpose of providing severance
benefits for a select group of management or highly compensated
employees.
1.3
Purpose of the Plan . The purpose of this Plan is
to advance the interests of the Company by providing highly
qualified Company executives and other key personnel with an
assurance of equitable treatment in terms of compensation and
economic security and to induce continued employment with the
Company in the event of certain spin-offs, divestitures, or an
acquisition or other Change in Control. The Corporation
believes that an assurance of equitable treatment will enable
valued executives and key personnel to maintain productivity and
focus during a period of significant uncertainty inherent in such
situations and that a severance compensation plan of this kind will
aid the Company in attracting and retaining the highly qualified
professionals who are essential to its success.
SECTION
2. DEFINITIONS
2.1
Definitions . Whenever used herein, the following
terms shall have the meanings set forth below, unless otherwise
expressly provided herein or unless a different meaning is plainly
required by the context, and when the defined meaning is intended,
the term is capitalized:
(a) “
Agreement ” means a contract between an Eligible
Employee and the Company permitting the Eligible Employee to
participate in the Plan and delineating the benefits (if any) that
are to be provided to the Eligible Employee in lieu of or in
addition to the benefits described under the terms of this
Plan.
(b) “
Base Salary ” means the base rate of compensation
payable to a Participant as annual salary, not reduced by any
pre-tax deferrals under any tax-qualified plan, non-qualified
deferred compensation plan, qualified transportation fringe benefit
plan under Code Section 132(f), or cafeteria plan under Section 125
maintained by the Company, but excluding amounts received or
receivable under all incentive or other bonus plans.
(c) “
Beneficial Owner ” shall have the meaning ascribed to
such term in Rule 13d-3 of the General Rules and Regulations under
the Exchange Act.
(d) “
Beneficiary ” means any person or entity who, upon the
Participant’s death, is entitled to receive the
Participant’s benefits under the Plan in accordance with
Section 5 hereof.
(e) “
Board ” means the Board of Directors of the
Corporation.
(f) “
Change in Control ” means a change in control of the
Corporation of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A promulgated
under the Exchange Act, whether or not the Corporation is then
subject to such reporting requirements; provided that, without
limitation, such a Change in Control shall be deemed to have
occurred if:
(i) Any
Person (as defined in Section 3(a)(9) of the Exchange Act and used
in Sections 13(d) and 14(d) thereof, including a
“group” as defined in Section 13(d)) is or becomes the
Beneficial Owner, directly or indirectly, of twenty five percent
(25%) or more of the combined voting power of the outstanding
shares of capital stock of the Corporation;
(ii) During
any period of two (2) consecutive years (not including any period
prior to December 18, 1996) there shall cease to be a majority of
the Board comprised as follows: individuals who at the beginning of
such period constitute the Board and any new director(s) whose
election by the Board or nomination for election by the
Corporation’s stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either
were directors at the beginning of the period or whose election or
nomination for election was previously so approved;
(iii) The
issuance of an Order by the Securities and Exchange Commission,
under Section 9(a)(2) of the Public Utility Holding Company Act of
1935, as amended (the “1935 Act”), authorizing a third
party to acquire five percent (5%) or more of the
Corporation’s voting shares of capital stock;
(iv) The
shareholders of the Corporation approve a merger or consolidation
of the Corporation with any other corporation, other than a merger
or consolidation which would result in the voting shares of capital
stock of the Corporation outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by
being converted into voting shares of capital stock of the
surviving entity) at least eighty percent (80%) of the combined
voting power of the voting shares of capital stock of the
Corporation or such surviving entity outstanding immediately after
such merger or consolidation; or the shareholders of the
Corporation approve a plan of complete liquidation of the
Corporation or an agreement for the sale or disposition by the
Corporation of all or substantially all of the Corporation’s
assets; or
(v) The
shareholders of the Corporation approve a plan of complete
liquidation, or the sale or disposition of South Carolina Electric
& Gas Company (hereinafter SCE&G), South Carolina Pipeline
Corporation, or any subsidiary of the Corporation designated by the
Board as a “Material Subsidiary,” but such event shall
represent a Change in Control only with respect to a Participant
who has been exclusively assigned to SCE&G, South Carolina
Pipeline Corporation, or the affected Material
Subsidiary.
(g) “
Code ” means the Internal Revenue Code of 1986, as
amended.
(h) “
Committee ” means the Human Resources Committee of the
Board. Any references in this Plan to the
“Committee” shall be deemed to include references to
the designee appointed by the Committee under Section
7.4.
(i) “
Company ” means the Corporation and any subsidiaries
of the Corporation and their successor(s) or assign(s) that adopt
this Plan through execution of Agreements with any of their
Employees or otherwise. When the term “Company” is used
with respect to an individual Participant, it shall refer to the
specific company at which the Participant is employed, unless
otherwise required by the context.
(j) “
Corporation ” means SCANA Corporation, a South
Carolina corporation, or any successor thereto.
(k) “
Effective Date of Termination ” means the date on
which a Qualifying Termination occurs which triggers SEBP Benefits
hereunder.
(l) “
Eligible Employee ” means an Employee who is employed
by the Company in a high-level management or administrative
position, including employees who also serve as officers of the
Company, as determined under the SCANA Corporation Executive
Benefit Plan.
(m) “
Employee ” means a person who is actively employed by
the Company and who falls under the usual common law rules
applicable in determining the employer-employee
relationship.
(n) “
Exchange Act ” means the Securities Exchange Act of
1934, as amended.
(o) “
Good Reason ” means, without the Participant’s
written consent, the occurrence after a Change in Control of the
Company of any one or more of the following:
(i) A
material diminution in the Participant’s Base
Salary;
(ii) A
material diminution in the Participant’s authority, duties,
or responsibilities;
(iii) A
material diminution in the authority, duties, or responsibilities
of the supervisor to whom the Participant is required to report,
including a requirement that the Participant report to a Company
officer or Employee instead of reporting directly to the
Board;
(iv) A
material diminution in the budget over which the Participant
retains authority;
(v) A
material change in the geographic location at which the Participant
must perform the services; and
(vi) Any
other action or inaction that constitutes a material breach by the
Company of the agreement under which the Participant provides
services.
A
Participant’s right to terminate his or her employment for
Good Reason shall not be affected by his or her incapacity due to
physical or mental illness. A Participant’s continued
employment shall not constitute consent to, or a waiver of rights
with respect to, any circumstance constituting Good Reason
herein.
(p) “
Just Cause ” means any one or more of the
following:
(i) Willful
and continued failure by a Participant to substantially perform his
or her duties with the Company (other than any such failure
resulting from a Qualifying Termination), after a demand for
substantial performance is delivered to the Participant that
specifically identifies the manner in which the Company believes
that the Participant has not substantially performed his/her
duties, and the Participant has failed to resume substantial
performance of his/her duties on a continuous basis within fourteen
(14) days of receiving such demand;
(ii) The
willful engaging by a Participant in conduct which is demonstrably
and materially injurious to the Company, monetarily or otherwise;
or
(iii) A
Participant’s conviction of a felony or conviction of a
misdemeanor which impairs his/her ability substantially to perform
his/her duties with the Company.
For purposes of
this Section 2.1(p), no act, or failure to act, on a
Participant’s part shall be deemed “willful”
unless done, or omitted to be done, by a Participant not in good
faith and without reasonable belief that the Participant’s
action or omission was in the best interest of the
Company.
(q) “
Participant ” means any Eligible Employee who is
participating in the Plan in accordance with the provisions herein
set forth.
(r) “
Potential Change in Control ” means and includes the
event of any one or more of the following occurrences:
(i) The
Corporation enters into an agreement, the consummation of which
would result in the occurrence of a Change in Control of the
Corporation;
(ii) Any
person including the Corporation publicly announces an intention to
take or to consider taking actions which if consummated, would
constitute a Change of Control of the Corporation;
(iii) Any
person, other than a trustee or other fiduciary holding securities
under an employee benefit plan of the Corporation (or corporation
owned, directly or indirectly, by the stockholders of the
Corporation in substantially the same proportions as their
ownership of stock of the Corporation), becomes the Beneficial
Owner, directly or indirectly, of securities of the Corporation
representing eight and one-half percent (8.5%) or more of the
combined voting power of the Corporation’s then outstanding
securities;
(iv) The
filing of an application by a third party with the Securities and
Exchange Commission under Section 9(a)(2) of the 1935 Act for
authorization to acquire shares so as to hold, own or control,
directly or indirectly, five percent (5%) or more of the voting
stock of the Corporation; or
(v) The
Board adopts a resolution to the effect that for purposes of the
SCANA Corporation Executive Benefit Plan Trust and affected plans,
a Potential Change in Control has occurred.
(s) “
Qualifying Termination ” means any of the events
described in Section 4.2 herein, the occurrence of which triggers
the payment of SEBP Benefits hereunder.
(t) “
Retirement ” means the retirement of a Participant at
the “normal retirement age,” as defined in the SCANA
Corporation Retirement Plan, as in effect on July 1, 2000, and as
may be further amended and in effect from time to time, or in
accordance with any retirement arrangement established with the
Participant’s consent with respect to the
Participant.
(u) “
SEBP Benefit ” means the benefits as provided in
Section 4.3 herein.
(v) “
Total and Permanent Disability ” means a physical or
mental condition which:
(i) Renders
a Participant unable to discharge his/her normal work
responsibility with the Company and which, in the opinion of a
licensed physician selected by the Participant, based upon
significant medical evidence, can be reasonably expected to
continue for a period of at least one (1) year; or
(ii) Causes
a Participant to be absent from the full-time performance of
his/her duties with the Company for six (6) consecutive months and,
within thirty (30) days after the Company delivers to the
Participant written notice of termination, the Participant does not
return to the full-time performance of his/her duties.
2.2
Gender and Number . Except when otherwise
indicated by the context, any masculine terminology used herein
also shall include the feminine and the feminine shall include the
masculine, and the use of any term herein in the singular may also
include the plural and the plural shall include the
singular.
SECTION
3. ELIGIBILITY AND
PARTICIPATION
3.1
Eligibility . An Eligible Employee who is a
Participant for purposes of the SCANA Corporation Executive Benefit
Plan shall be a Participant automatically for purposes of this
Plan.
3.2
Termination of Participation . A Participant in
this Plan under Section 3.1 shall remain covered hereunder until
the earliest of (i) the date the Participant is notified, in a
writing signed by the Corporation’s Chief Executive Officer,
that the Participant is no longer covered by the provisions of this
Plan or the SCANA Corporation Executive Benefit Plan; (ii) the date
upon which the Participant’s employment terminates for any
reason, provided, however, the Participant shall remain covered
under the Plan after termination of employment so long as any
benefits are payable from this Plan; or (iii) the date of
termination of the Plan, provided, however, the Plan shall remain
in effect with respect to the Participant so long as any benefits
are payable to the Participant from this Plan.
SECTION
4. BENEFITS
4.1
Right to SEBP Benefits . A Participant shall be
entitled to receive from the Corporation SEBP Benefits as described
in Section 4 herein, if there has been a Change in Control and if,
within twenty-four (24) calendar months thereafter, the
Participant’s employment with the Company shall end for any
reason specified in Section 4.2 herein as being a Qualifying
Termination. The amount of all SEBP Benefits described
in Section 4 herein shall be calculated by the Committee in its
sole discretion.
4.2
Qualifying Termination . Subject to the terms of this Plan,
the occurrence of any one (1) of the following events within
twenty-four (24) calendar months after a Change in Control shall
trigger the payment of SEBP Benefits under th