Exhibit 10-3
RGS ENERGY GROUP, INC.
ROCHESTER GAS AND ELECTRIC CORPORATION
February 21, 2001
Xx. Xxxxxxx X. Xxxxxxx
Rochester Gas and Electric Corporation
00 Xxxx Xxxxxx
Xxxxxxxxx, XX 00000
Dear Xxxx:
Reference is made to the Severance Agreement made effective as of
April 26, 2000 (the "Current Severance Agreement"), by and among you, RGS Energy
Group, Inc. (the "Company") and Rochester Gas and Electric Corporation (the
"Subsidiary"). Capitalized terms not otherwise defined in this letter have the
same meanings as in the Severance Agreement. This letter is intended to clarify
certain aspects and provisions of the Current Severance Agreement, and, when
executed by you, shall constitute an amendment to such agreement.
1. [Prior Severance Agreement Superseded. You hereby agree that the
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Current Severance Agreement superseded that certain Severance Agreement, made
effective as of January 18, 1999, by and between you and the Subsidiary.
2. ]Definition of "Annual Salary" Clarified. Paragraph 4(a) of the
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Current Severance Agreement is hereby amended by deleting the current text
thereof and replacing it with the following:
"Annual Salary" shall, as determined on the Termination
Date, be equal to the sum of:
(i) the greater of (A) the highest base
salary paid or payable to the Employee
with respect to any twelve (12)
consecutive month period, as selected
by the Employee, during the three
years ending with the Termination Date
and (B) the Employee's base salary as
in effect on the Termination Date
(without regard to any reduction
giving rise to a Change in Duties
hereunder); and
(ii) the greater of (A) the Executive
Incentive Plan ("EIP")bonus for the
Employee's final year of employment
and (B) the average of the EIP bonuses
for the three years prior to the
Termination Date.
3. Additional Benefits Upon an Involuntary Termination. The following
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language shall be inserted at the beginning of paragraph 6 of the Current
Severance Agreement prior to subparagraph (a) thereof:
In addition to the severance payment
provided in paragraph 3 hereof, the Employee
shall be entitled to the following benefits in
the event of an Involuntary Termination of the
Employee's employment by the Company or any
subsidiary or successor of the Company occurring
within three years after a Change of Control:
4. No Rights to Other Severance. Paragraph 6(d) of the Current
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Severance Agreement is hereby amended by inserting the following at the end
thereof:
; provided, however, that the Employee shall not
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be entitled to any severance payments or
benefits under any severance plan except as
provided herein
5. Incentive Compensation. Paragraph 6(e) of the Current Severance
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Agreement is hereby amended by (a) inserting the term "equity-based" before the
word "award" and "awards" where they appear in such paragraph, (b) inserting the
parenthetical "(whether granted before, on or following a Change of Control and
whether granted by RGS or a successor, parent or other affiliate of RGS)" after
the words "previously made" in such paragraph, and (c) inserting the following
additional sentence at the end thereof.
The Employee shall be paid a pro rata bonus for
the year of termination under the EIP or any
other annual incentive bonus plan then
applicable to the Employee, which pro rata bonus
shall be determined following the close of the
relevant fiscal year based on actual performance
for such year and shall be paid at the same time
as bonuses are generally paid to
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other executives of the Company; provided, that
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such pro rata bonus shall be reduced but not
below zero, by the amount of any bonus under any
such plan previously paid to the Employee with
respect to the same year.
Please execute both copies of this letter in the space provided
below and return one fully executed copy to Xxxxxxx X. Xxxxxxx by February 23,
2001.
RGS ENERGY GROUP, INC.
By: /s/ X. X. Xxxxxxxx
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Name: Xxxxxx X. Xxxxxxxx
Title: Chairman, President and
Chief Executive Officer
ROCHESTER GAS AND ELECTRIC CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxx
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Name: Xxxxx X. Xxxxxxxxx
Title: Vice President and
Corporate Secretary
ACKNOWLEDGED AND AGREED:
/s/ M. T. Xxxxxxx
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Xxxxxxx X. Xxxxxxx
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