Exhibit 10.1
EXECUTIVE SEVERANCE AGREEMENT
AND RELEASE
This EXECUTIVE
SEVERANCE AGREEMENT AND RELEASE (“Agreement”) is
entered into by and between Peggy Howard-Moore
(“Employee”) and Alliant Energy Corporate Services,
Inc. (“Employer”). In consideration for the mutual
promises set forth herein, the parties agree as follows:
1.
Severance Date . Employee’s employment with Employer
terminated effective May 31, 2009 (“Severance Date”).
Employee received Employee's current salary and benefits, including
payment for unused vacation, through the Severance Date. Except as
expressly provided herein, all obligations of Employer to Employee
terminated as of the Severance Date.
2.
Severance Benefits . In consideration for the release set
forth in Paragraph 5 of this Agreement, Employer will pay to
Employee the sum of One hundred ninety five thousand, dollars
($195,000.00), less appropriate federal and state withholdings, by
the next regular pay period following the expiration of the seven
(7) day revocation period specified in Paragraph 10. This sum
represents twelve (12) months of Employee’s base
salary.
3.
Outplacement and Tuition Reimbursement . In further
consideration for the release set forth in Paragraph 5 of this
Agreement, the Employer will provide Employee with up to ten
thousand dollars ($10,000.00) in either Outplacement Services or
Tuition Reimbursement in accordance with programs maintained by the
Employer. Outplacement Services must be used within six (6) months
of the Severance Date and Tuition Reimbursement benefits must be
used within twenty-four (24) months of the Severance Date. Employee
will be required to make an irrevocable election for either
Outplacement Services or Tuition Reimbursement at the time this
Agreement is executed.
4.
Other Benefits . Employee will cease to be eligible to
participate under any stock option, bonus, equity, incentive
compensation, medical, dental, life insurance, retirement, pension,
and other compensation or benefit plans of Employer following the
Severance Date except as set forth below. Thereafter, Employee will
have no rights under such plans, except as follows:
|
|
a.
|
If Employee was
enrolled in a medical plan and/or dental plan of Employer, such
coverage continued to May 31, 2009. Thereafter, Employee may elect
to continue coverage under federal COBRA provisions for up to
eighteen (18) months. If Employee elects continued coverage,
Employer will pay for the first six (6) months of COBRA coverage,
after which time Employee will be responsible for paying all or a
portion of the monthly premiums consistent with applicable
law.
|
|
|
b.
|
Employee will
retain any vested rights under all qualified retirement plans of
Employer in which Employee is a participant and all rights
associated with such benefits, including retiree medical and dental
coverage, as determined by the official terms of those
plans.
|
|
|
c.
|
All vested stock
options held by Employee as of the Severance Date may be exercised
in accordance with the official terms of any stock option plan in
which Employee is a participant. All options not vested as of the
Severance Date shall be forfeited. Shares of restricted stock shall
be handled in accordance with the provisions of the individual
grant agreements.
|
|
|
d.
|
Employee will
retain any vested rights under the Alliant Energy Corporation Key
Employee Deferred Compensation Plan in accordance with the official
terms of that plan.
|
|
|
e.
|
If the Alliant
Energy Board of Directors approves a payout under the Alliant
Energy incentive compensation plans for 2009, Employee will be
eligible to receive a payment for incentive compensation in
accordance with the terms of the plan in which Employee is a
participant. Such payment shall be made to the Employee at the same
time as incentive payments are made to current Alliant Energy
employees, if at all, and shall be subject to appropriate federal
and state withholdings.
|
5.
Release . In exchange for the promises made by Employer
contained in this Agreement, Employee hereby releases and forever
discharges Employer, its parent, subsidiaries, affiliates, agents,
employees, officers, directors, shareholders, successors, and
assigns from all claims, liabilities, demands and causes of action
whether known or unknown, fixed or contingent, arising out of or in
any way c
