Exhibit (10)(j)
EMPLOYMENT AGREEMENT
AGREEMENT between CMS Energy Corporation, a Michigan corporation
(the "Corporation"), and Xxxxxx X. Xxxxxxxx (the "Executive") dated this
12 day of January, 1996.
Whereas the Corporation considers the maintenance of a vital
management essential to protecting and enhancing the best interests of the
Corporation and its shareholders. Whereas the Corporation has determined
to encourage the continuing attention and dedication of the key members of
its management without the distraction arising from the possibility of a
change in control.
Therefore, the parties hereto agree as follows:
1. Operation of Agreement. The "Effective Date" shall be the
date on which a Change of Control (as defined in Section 2) shall occur.
2. Change of Control. As used in this Agreement, "Change of
Control" shall be deemed to have taken place if a person, including a
"group" as defined in Section 13(d)(3) of the Securities Exchange Act of
1934 becomes the beneficial owner of shares having 35% or more of the
total number of votes that may be cast in the election of Directors of CMS
Energy Corporation.
3. Employment. The Corporation hereby agrees to continue to
employ and engage the services of the Executive as its Senior Vice
President and General Counsel of CMS Energy Corporation for the period
beginning on the Effective Date and ending on the earlier of the fifth
anniversary of such date or the Normal Retirement Date of the Executive
under the Consumers Power Company's Pension Plan (hereinafter "Employment
Period"). The Executive agrees to serve the Corporation in such position,
unless an event shall occur which is described in Section 6.
4. Duties. The Executive agrees during the Employment Period to
devote his full business time to the business and affairs of the
Corporation (except for (i) services on corporate, civic or charitable
boards or committees, (ii) such reasonable time as shall be required for
the investment of the Executive's assets, which do not significantly
interfere with the performance of his responsibilities hereunder and
(iii) periods of vacation and sick leave to which he is entitled) and to
use his best efforts to promote the interests of the Corporation and to
perform faithfully and efficiently the responsibilities of Senior Vice
President and General Counsel of CMS Energy Corporation.
5. Compensation and Other Terms of Employment.
(a) Base Salary. The Executive shall receive an annual base
salary ("Base Salary") of not less than his annual salary immediately
prior to the Effective Date (payable in equal semi-monthly installments)
from the Corporation.
The Base Salary shall be reviewed and may be increased at any
time and from time to time in accordance with the Corporation's regular
practices, and shall be reviewed at least annually by the Organization and
Compensation Committee of its Board of Directors.
(b) Incentive Compensation. As further compensation, the
Executive will be eligible for awards ("Incentive Compensation") under the
Corporation's Executive Incentive Compensation Plan in which he was
participating immediately prior to the Effective Date.
(c) Retirement, Savings and Stock Option Plans. In addition to
the Base Salary and Incentive Compensation payable as hereinabove
provided, the Executive shall be entitled to participate in savings, stock
options and other incentive plans and programs available to executives of
the Corporation or to opportunities provided under any such plans in which
he was participating immediately preceding the Effective Date, whichever
is greater.
(d) Vacation and Employee Benefits.
(i) The Executive shall be entitled to paid vacation and other
employee benefits and perquisites, in accordance with the policies of the
Corporation in effect for executive officers, or the vacation employee
benefits and perquisites to which he was entitled immediately prior to the
Effective Date, whichever is greater.
6. Termination.
(a) Death. This Agreement shall terminate automatically upon
the Executive's death. In the event of such termination, the Corporation
shall pay to the Executive's estate all benefits and compensation accrued
hereunder to the date of death, including a pro rata portion of incentive
compensation.
(b) Disability. In the event the Executive becomes unable by
reason of physical or mental disability to render the services required
hereunder and such disability continues for a continuous period of 6
months, the employment of the Executive hereunder shall terminate, unless
the employment is extended by agreement of the Corporation and the
Executive. Commencing at the date of termination of employment for
disability, the Executive shall receive annually a sum equal to 50% of his
Base Salary at the time of termination of employment, in monthly
installments until his 62nd birthday, or his death if earlier. Disability
payments hereunder shall be reduced by the amount of other
Corporation-sponsored disability benefits paid to the Executive through
insurance or otherwise.
(c) Termination with Cause. The Corporation may terminate the
Executive's employment for Cause. For purposes of this Agreement, "Cause"
shall mean an act or acts of dishonesty, fraud, misappropriation or
intentional material damage to the property or business of the Corporation
or commission of a felony on the Executive's part. If the Executive's
employment is terminated for Cause, the Corporation shall pay the
Executive his full accrued Base Salary through the date of such
termination at the rate in effect at the time of such termination, and the
Corporation shall have no further obligations to the Executive under this
Agreement.
(d) Other Termination or Resignation of Executive.
(i) The Corporation may terminate the Executive's employment
without Cause.
(ii) In the event that the Executive determines in his sole
judgment that his position, authority, or responsibilities have been
diminished as a result of the "Change of Control," the Executive may
terminate his employment with the Corporation upon written notice given
within 12 months after the Effective Date.
(iii) In the event of a termination of employment under this
subsection (d), the Executive shall receive a severance payment equal to
twice his Base Salary at the time of termination of employment plus either
twice his incentive compensation payable with respect to the last full
calendar year prior to the termination of employment or, if no incentive
compensation was awarded to the Executive with respect to the last full
calendar year prior to the termination of employment, twice the standard
incentive award, as defined in the Corporation's Executive Incentive
Compensation Plan for the salary grade of the Executive for such year.
The severance payment shall be paid in a lump sum payment, in cash, or as
otherwise directed by the Executive.
7. No Obligation to Mitigate Damages. The Executive shall not
be obligated to seek other employment in mitigation of amounts payable or
arrangements made under the provisions of this Agreement and the obtaining
of any such other employment shall in no event effect any reduction of the
Corporation's obligations to make the payments and arrangements required
to be made under this Agreement.
8. Indemnification. The Corporation shall include the Executive
in its Director and Officer Liability Insurance policy, if any, during his
Employment Period and for a period of not less than five years after the
termination of the Executive's employment for any reason whatsoever. In
addition to insurance and any other indemnification available to the
Executive as an Officer, the Corporation shall indemnify, to the extent
permitted by applicable law, the Executive for settlements, judgments and
reasonable expenses in connection with activities arising from services
rendered by the Executive as a Director or Officer of the Corporation or
any affiliated company.
9. Notices. Any notices, requests, demands and other
communications provided for by this Agreement shall be sufficient if in
writing and if sent by registered or certified mail to the Executive at
the last address he has filed in writing with the Corporation or, in the
case of the Corporation, Attn: Secretary, at its principal executive
offices.
10. Non-Alienation. The Executive shall not have any right to
pledge, hypothecate, anticipate or in any way create a lien or security
interest upon any amounts provided under this Agreement; and no benefits
payable hereunder shall be assignable in anticipation of payment either by
voluntary or involuntary acts, or by operation of law, except by will or
the laws of descent and distribution.
11. Governing Law. The provisions of this Agreement shall be
construed in accordance with the laws of the State of Michigan.
12. Amendment. This Agreement may be amended or cancelled only
by mutual agreement of the parties in writing without the consent of any
other person and, so long as the Executive lives, no person, other than
the parties hereto, shall have any rights under or interest in this
Agreement or the subject matter hereof.
13. Successor to the Corporation. Except as may be otherwise
provided herein, this Agreement shall be binding upon and inure to the
benefit of the Corporation and any successor of the Corporation.
14. Severability. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement.
IN WITNESS WHEREOF, the Corporation and the Executive have
executed this Agreement as of the date first above written.
/s/ Xxxxxx X. Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
CMS ENERGY CORPORATION
/s/ Xxxxxxx X. XxXxxxxxx, Xx.
By: ------------------------------
Xxxxxxx X. XxXxxxxxx, Xx.
Chairman of the Board
and Chief Executive Officer
