Exhibit 10.37
Amendment Number Two to
Employment Agreement
Between Mirant Corporation and
Robert M. Edgell
This Amendment is made as of
July 17, 2007 between Mirant Corporation (the
“Company”), Mirant Services, LLC
(“Services”) and Robert M. Edgell
(“Executive”).
Whereas, the Company, Services and
Executive desire to amend the Employment Agreement between the
Company, Services and Executive dated as of January 3, 2006,
as amended as of August 11, 2006 (the “Employment
Agreement”) to comply with requirements of Section 409A
of the Internal Revenue Code of 1986, as amended (the
“Code”);
In consideration of the mutual
covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company, Services and Executive agree to amend
the Employment Agreement as follows:
1. Section 3(b) of the
Employment Agreement is amended by adding the following sentence to
the end of such section:
The amount of reasonable business
expenses eligible for reimbursement in any taxable year of
Executive shall not affect the amount of reasonable business
expenses eligible for reimbursement in any other taxable year of
Executive.
2. Sections 5(a) through 5(g) of
the Employment Agreement are deleted and the provisions below are
substituted for such sections of the Employment
Agreement:
5. Severance
.
(a) Termination Without Cause,
Non-Renewal or for Good Reason . In the event of
Executive’s termination of employment with the Company
(1) by the Company without Cause (as defined herein),
(2) by reason of the failure of the Company to offer to renew
the Agreement on terms and conditions at least equal to the terms
and conditions set forth in the Employment Agreement executed on
January 3, 2006, which shall be deemed to include a Base
Salary and Target Bonus at least equal to the Executive’s
Base Salary and Target Bonus at such time, or (3) by Executive
for Good Reason (as defined herein), subject to execution of a
Release substantially in the form attached as Exhibit D within
30 days following Executive’s termination of employment with
the Company, Executive shall be entitled to the benefits set forth
below in this Section 5(a).
(i) The Company shall pay
Executive an amount equal to the sum of (A) 1.5 times
Executive’s Base Salary, plus (B) 1.5 times
Executive’s Target Bonus (as in effect on the date of
Executive’s termination), plus (C) 2.0 times the
Company’s annual cost for life insurance and long-term
disability insurance provided to Executive immediately prior to his
termination of employment (calculated by multiplying the monthly
cost for such coverage at the
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time of Executive’s
termination of employment by 12), plus (D) 2.0 times the sum
of (1) the annual matching contribution which Executive
received under the Employee Savings Plan and Supplemental Benefit
Plan for the year immediately preceding the year in which
Executive’s employment with the Company terminates, plus
(2) the fixed profit sharing and discretionary profit sharing
contributions which Executive received under the Employee Savings
Plan and Supplemental Benefit Plan for the year immediately
preceding the year in which Executive’s employment with the
Company terminates. The severance amount described in the
previous sentence shall be paid in a lump sum on the date that is
six months and one day after Executive experiences a
“separation from service” (within the meaning of
Section 409A(a)(2)(A)(i) of the Code) with the
Company.
(ii) The Executive LTIP shall
be governed by the terms of the applicable LTIP Award
Agreements.
(iii) The Company shall pay
Executive the amounts described in Section 5(e) within 14 days
after the date of termination of Executive’s employment. In
addition, the Company shall pay Executive a pro rata portion of
Executive’s Target Bonus for the fiscal year in which
Executive’s termination of employment occurs, based on the
number of days in such fiscal year during which Executive was
employed. The pro rata bonus payment described in the previous
sentence shall be paid in a lump sum on the date that is six months
and one day after Executive experiences a “separation from
service” with the Company.
(iv) During the period of 18
months following Executive’s termination of employment in
accordance with Section 5(a), the Company shall provide to
Executive continued coverage under the medical, dental and other
group health benefits and plans in effect for senior executives of
the Company, as in effect on the date of Executive’s
termination of employment (or substantially comparable coverage)
for Executive and, where applicable, Executive’s spouse,
dependents and beneficiaries, at the same contribution or premium
rate as may be charged from time to time to senior executives of
the Company generally, as if Executive had continued in employment
during such period.
(v) The Company shall pay Executive
a lump sum amount equal to the cost of an additional six months of
coverage under the medical, dental and vision plans in which
Executive participates on the date his employment terminates. The
cost of coverage for each month shall equal the excess of COBRA
premiums charged for medical, dental and vision benefits, less the
employee monthly contributions for such benefits paid by active
senior executive employees of the Company. For purposes of
calculating the COBRA premiums and the monthly employee premiums,
the six months of coverage shall be deemed to begin at the end of
the 18 month period described in subsection (iv), and shall be
calculated using assumed annual inflation factors of 10% for
medical benefits, 7% for dental benefits and 3% for vision
benefits, which will be applied to each succeeding calendar year
(or portion of a calendar year) for which the lump sum payment
applies. The lump sum amount described in this subsection
(v) shall be paid on the date that is six months and one day
after Executive experiences a “separation from service”
with the Company.
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(vi) The Company shall provide
a release substantially in the form attached hereto as
Exhibit G. If the Company does not provide the release
required pursuant to this subsection (vi), the Release by the
Executive shall be null, void and without effect, and Executive
shall still receive all of the payments and benefits described in
subsections (i) through (v) above.
(b) Termination for Cause or
Voluntary Resignation . In the event that
Executive’s employment with the Company is terminated
(i) by the Board for Cause or (ii) by Executive’s
resignation from the Company for any reason other than Good Reason
or Disability (as defined herein), subject to applicable law, the
Company agrees to the following:
(i) The Executive LTIP shall be
governed by the terms of the applicable LTIP Award
Agreements.
(ii) The Company shall pay Executive
the amounts described in Section 5(e) within 14 days after the
date of termination of Executive’s employment.
For purposes of this Agreement,
Executive’s retirement shall be considered Executive’s
resignation from the Company without Good Reason.
(c) Death . In the event
that Executive’s employment with the Company is terminated as
a result of Executive’s death, the Company agrees to the
following:
(i) The Company shall pay
Executive’s estate a lump sum amount equal to his target
Annual Bonus for the year of termination prorated for the number of
days during such year that Executi
