{"id":38736,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/deferred-compensation-agreement-the-southern-co-southern4.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"deferred-compensation-agreement-the-southern-co-southern4","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/deferred-compensation-agreement-the-southern-co-southern4.html","title":{"rendered":"Deferred Compensation Agreement &#8211; The Southern Co., Southern Energy Resources Inc. and Raymond D. Hill"},"content":{"rendered":"<pre>                         DEFERRED COMPENSATION AGREEMENT\n\n         THIS DEFERRED COMPENSATION AGREEMENT (\"Agreement\") made and entered\ninto by and between The Southern Company (\"Southern\"), Southern Energy\nResources, Inc. (the \"Company\") and Raymond D. Hill (\"Mr. Hill\").\n\n                                   WITNESSETH:\n\n         WHEREAS, Mr. Hill is an Officer of the Company;\n\n         WHEREAS, the Company and Southern wish to encourage Mr. Hill to\nincrease the profitability of the Company and to provide Mr. Hill an interest in\nthe Company's overall profitability, and to provide Mr. Hill with additional\ndeferred compensation for service he has or will provide the Company;\n\n         NOW, THEREFORE, in consideration of the premises, and the agreements of\nthe parties set forth in this Agreement, and other good and valuable\nconsideration, the receipt and sufficiency of which are hereby acknowledged, the\nparties hereby agree as follows:\n\n         1.       Retention Bonus.\n\n                  a.       General Nature of Award. Subject to the terms and\n         conditions of this Agreement, the Company shall establish and maintain\n         on behalf of Mr. Hill an account on the Company's books and records\n         (the \"Account\") which, if Mr. Hill continues to be an employee of the\n         Company, or any affiliate or subsidiary of Southern (as set forth in\n         Paragraph 5 hereof), shall entitle Mr. Hill to receive on March 1, 2003\n         (the period from the effective date of the Agreement through March 1,\n         2003 to be referred to as the \"Performance Period\") an amount equal to\n         the then Market Value (as defined below) of the equivalent of Three\n         Hundred Thousand Dollars ($300,000.00) of Market Value of\n\n   2\n\n         Southern's common stock deemed to have been purchased as of the\n         effective date of this Agreement, including reinvested dividends\n         thereon, increased, if certain profitability goals are met, by\n         estimated income tax expenses.\n\n                  b.       Investment.\n\n                           (1)      As of the date hereof, the Company shall\n                  credit to Mr. Hill's Account that number of deemed shares\n                  (including fractional shares) of Southern's common stock\n                  (\"Common Stock\") as shall equal $300,000.00 in Market Value\n                  (as defined herein) determined as of the effective date of\n                  this Agreement (such hypothetical shares to be referred to\n                  herein as the \"Phantom Stock\"). For purposes of this\n                  Agreement, \"Market Value\" shall mean the average closing price\n                  of the Common Stock as reported by the New York Stock Exchange\n                  for the ten trading days immediately preceding the respective\n                  valuation date.\n\n                           (2)      As of the day of each calendar quarter in \n                  which occurs the payment of dividends on Common Stock, there\n                  shall be credited to Mr. Hill's Account such additional shares\n                  of Phantom Stock (including fractional shares) as could have\n                  been purchased at the Market Value on such day as follows:\n\n                                    (a)      In the case of cash dividends, such\n                           additional shares of Phantom Stock as could have been\n                           purchased with the dividends payable on the number of\n                           shares of Phantom Stock credited to the Account\n                           immediately prior to the dividend;\n\n                                    (b)      In the case of dividends payable in\n                           property other than cash or Common Stock, such\n                           additional shares of Phantom Stock as could have been\n                           purchased with the fair market value of the property\n                           which would have\n\n\n                                       2\n   3\n\n                           been payable as dividends on the number of shares of\n                           Phantom Stock credited to the Account immediately\n                           prior to the dividend; or\n\n                                    (c) In the case of dividends payable in\n                           Common Stock, such additional shares of Phantom Stock\n                           as would have been payable on the number of shares of\n                           Phantom Stock credited to the Account immediately\n                           prior to the dividend.\n\n                           (3)      In the event that the number of outstanding\n                  shares of Common Stock is changed through merger,\n                  consolidation, reorganization, recapitalization,\n                  reincorporation, stock split, stock dividend (in excess of 2%)\n                  or other change in the capital structure of Southern without\n                  consideration, or upon the occurrence of any other\n                  extraordinary corporate event involving the Common Stock\n                  causing a reduction in the value of the Common Stock, such as\n                  a corporate spin off or split up, the number of shares of\n                  Phantom Stock credited to the Account shall be proportionately\n                  adjusted by the Company so as to preserve the value of the\n                  Account immediately prior to such event.\n\n                  c.       Vesting of Account. The Market Value of Mr. Hill's\n         Account shall vest on March 1, 2003 (the \"Vesting Date\"), provided Mr.\n         Hill is then an employee of the Company, Southern, or an affiliate or\n         subsidiary of Southern.\n\n                  d.       Valuation of Account. The value of Mr. Hill's Account\n         on any date shall be based on the Market Value on such date multiplied\n         by the number of shares of Phantom Stock then credited to the Account,\n         provided, however, that if the profitability goals established for the\n         Company and for Mr. Hill by the Chief Executive Officers of Southern\n         and the Company have been equaled or exceeded during the Performance\n\n\n                                       3\n   4\n\n         Period as set forth on Exhibit A, and as annually documented on Exhibit\n         B of this Agreement (the \"Profitability Goals\"), the value of the\n         Account shall be increased upon payout to cover Mr. Hill's federal and\n         state income tax expense as reasonably estimated by the Company for the\n         year of payout (the \"Tax Gross-up\"). Failure to meet the Profitability\n         Goals for the Performance Period shall result in the forfeiture of the\n         Tax Gross-up, provided, however, that the Chief Executive Officers of\n         Southern and the Company may, in their sole discretion, determine after\n         the close of the Performance Period, that as a result of overall\n         Company profitability and individual performance during the entire\n         Performance Period, all or a portion of the value of the Tax Gross-up\n         shall nevertheless be paid.\n\n                  e.       Payment of Account Balance. Provided that Mr. Hill is\n         then an employee of the Company, Southern, or an affiliate or\n         subsidiary of Southern, and, with respect to the Tax Gross-up amount,\n         has also achieved the Profitability Goals, the Company shall pay to Mr.\n         Hill the value of his Account, and, if applicable, the Tax Gross-up\n         amount, in cash within ten (10) days of the Vesting Date.\n\n                  f.       Election to Defer. By written election filed with\n         Southern's Vice President, Human Resources no less than thirteen (13)\n         months prior to the Vesting Date, Mr. Hill may defer all or a portion\n         of the amount to be received under this Agreement by having such amount\n         contributed on his account to The Southern Company Deferred\n         Compensation Plan, in accordance with the terms and conditions of such\n         Plan.\n\n                  g.       Death, Permanent Disability, Termination Without \n         Cause, Termination for Good Reason, or Continued Employment Following a\n         Change in Control. In the event of Mr. Hill's termination of employment\n         with the Company prior to the payout of the value of\n\n\n                                       4\n   5\n\n         the Account for reasons of death, permanent disability, termination by\n         the Company without Cause, or termination of employment by Mr. Hill for\n         Good Reason following a Change in Control, or, if prior to the payout\n         of the value of the Account Mr. Hill continues employment with the\n         Company, any Southern Subsidiary, or any employer that succeeds to all\n         or substantially all of the assets of the Company, Southern, or any\n         Southern Subsidiary following a Change in Control, the Company shall\n         pay to Mr. Hill, or his estate in the event of death, the value of the\n         Account determined as of the date of such termination or Change in\n         Control, plus, if the Profitability Goals have been met as of such\n         date, the Tax Gross-up amount. For purposes of this Paragraph 1.g., the\n         terms Cause, Change in Control, Good Reason, and Southern Subsidiary\n         shall have the meaning set forth in that certain Change in Control\n         Agreement, dated June 17, 1999, as amended from time to time, between\n         Southern, the Company and Mr. Hill (the \"Change in Control Agreement\"),\n         the defined terms of which are incorporated in this Paragraph 1.g. by\n         reference thereto.\n\n                  h.       Assignability. Neither Mr. Hill, his estate, his\n         beneficiaries, nor his legal representative shall have any rights to\n         commute, sell, assign, transfer or otherwise convey the right to\n         receive the payment under this Paragraph 1, which payment and the\n         rights thereto are expressly declared to be nonassignable and\n         nontransferable. Any attempt to assign or transfer the right to such\n         payment shall be void and have no effect.\n\n         2.       Supplemental Pension Payment.\n\n                  a.       Nature of Payment. If Mr. Hill remains employed with \n         the Company until March 1, 2003 (the \"Service Requirement\") and upon\n         his termination of employment enters into a release in the form\n         attached hereto as Exhibit C, the Company shall pay him an amount per\n         month equal to the difference between the monthly amount payable to him\n\n\n                                       5\n   6\n\n         under The Southern Company Pension Plan (the \"Plan\") as it shall then\n         be in effect at the time and the monthly amount which would have been\n         payable to him under the Plan if his period of Accredited Service under\n         the Plan included an additional ten (10) years; provided, however, that\n         the Plan's 43-year maximum on Accredited Service shall not apply to the\n         additional service granted under this Agreement, and provided further,\n         that the Service Requirement shall not apply if Mr. Hill is terminated\n         under circumstances that result in eligibility for severance benefits\n         under the Change in Control Agreement (\"Change in Control\n         Termination\"). Similarly, such additional service shall also be\n         credited to Mr. Hill for purposes of calculating a benefit under The\n         Southern Company Supplemental Executive Retirement Plan and\/or The\n         Southern Energy Resources, Inc. Supplemental Executive Retirement Plan\n         (collectively \"SERP\"). For the purpose of computing a monthly amount\n         payable to Mr. Hill under the Plan, no limitation on benefits imposed\n         by the Internal Revenue Code as it now exists or is hereafter amended\n         or any other limiting legislation shall be taken into account. Said\n         amount shall be recalculated from time to time to reflect any future\n         increases, if any, in Retirement Income of retirees following Mr.\n         Hill's retirement. Mr. Hill covenants and agrees that the consideration\n         set forth in this Paragraph 2.a. shall constitute good and complete\n         consideration for the release attached hereto as Exhibit C, those\n         nondisclosure and ownership obligations under Paragraph 4 hereof, and\n         all other obligations and covenants of Mr. Hill contained herein.\n\n                  b.       Commencement and Form of Payment. The benefit \n         provided in accordance with Paragraph 2.a. above shall be paid in\n         monthly installments on the first day of each month in the same manner\n         and commence at the same time as Mr. Hill's election to receive\n         Retirement Income under the Plan. Mr. Hill's benefit under Paragraph\n\n\n                                       6\n   7\n\n         2.a. shall be subject to such early commencement reduction factors as\n         would apply to a participant in the Plan based on his benefit\n         commencement date under Paragraph 2.a. In the event Mr. Hill is\n         married, predeceases his spouse, and his spouse is entitled to payments\n         as a Provisional Payee, monthly payments shall be made in the same\n         manner as provided by the Provisional Payee option elected by him under\n         the Plan taking into account the additional Accredited Service set\n         forth in Paragraph 2.a. In the event Mr. Hill shall not be married or\n         shall not be survived by his spouse on the date payments commence under\n         this Paragraph 2, the benefit described in the preceding sentence shall\n         be forfeited. Mr. Hill or his surviving spouse shall not, under any\n         circumstances, have any option or right to require payments hereunder\n         otherwise than in accordance with the terms hereof.\n\n                  c.       Company's Option to Enhance Payment. On the second\n         anniversary of the effective date of this Agreement, the Company shall\n         have the option in its sole discretion to enhance the benefit under\n         this Paragraph 2 as follows: beginning September 1, 2002, for each year\n         of service completed by Mr. Hill with the Company after such date, the\n         Company shall pay him an amount per month equal to the difference\n         between the monthly amount payable to him under the Plan as it shall\n         then be in effect at the time and the monthly amount which would have\n         been payable to him under the Plan if his period of Accredited Service\n         under the Plan included an additional year, to a maximum of three (3)\n         additional years. Such additional service shall also be credited to Mr.\n         Hill for purposes of calculating a benefit under the SERP. If the\n         Company exercises such option, it shall so notify Mr. Hill in writing\n         and all the terms and conditions set forth in Paragraphs 2.a. and 2.b.\n         with respect to the original grant of supplemental pension credit shall\n         apply.\n\n\n                                       7\n   8\n\n         3.       Publicity; No Disparaging Statement. Except as otherwise \nprovided in Paragraph 6 hereof, Mr. Hill, Southern and the Company covenant and\nagree that they shall not engage in any communications which shall disparage one\nanother or interfere with their existing or prospective business relationships.\n\n         4.       Non-Disclosure and Non-Solicitation.\n\n                  a.       Definitions. For purposes of this Paragraph 4, the\n         following terms shall have the following meanings:\n\n                           1)       \"Entity\" shall mean any business, \n                  individual, partnership, joint venture, agency, governmental\n                  subdivision, association, firm, corporation or other entity.\n\n                           2)       \"Affiliate\" shall mean the following \n                  Entities: (a) any Entity which owns an Interest (as defined\n                  below) in the Company either directly or indirectly through\n                  any other Entity, (b) any Entity an Interest in which is owned\n                  directly or indirectly by any Entity which owns directly or\n                  indirectly an Interest in the Company or (c) any Entity in\n                  which the Company owns an Interest either directly or\n                  indirectly through any other Entity. For purposes of this\n                  Agreement, the term \"Interest\" shall include any equity\n                  interest in an Entity in an amount equal to or greater than\n                  30% of the Entity's total outstanding equity interests.\n\n                           3)       \"Confidential Information\" shall mean \n                  proprietary and confidential data or information other than\n                  Trade Secrets (as defined below), which is valuable to, and\n                  related to the business of, the Company, its Affiliates or\n                  non-affiliated Entities with whom the Company or its\n                  Affiliates has or have business relationships (collectively,\n                  \"Third Parties\"), and the details of which are generally\n\n\n                                       8\n   9\n\n                  unknown to the public or to the Company's competitors,\n                  including, without limitation, information regarding the\n                  Company's employees, business strategies, models and systems,\n                  customers, suppliers, partners and affiliates, gained by Mr.\n                  Hill as a result of his affiliation with the Company or its\n                  Affiliates, and other items that the Company or its Affiliates\n                  may from time to time mark or otherwise identify as\n                  confidential.\n\n                           4)       \"Trade Secrets\" shall mean information of or\n                  related to the Company, its Affiliates or Third Parties which\n                  (a) derives economic value, actual or potential, from not\n                  being generally known to, and not being readily ascertainable\n                  by proper means by, other persons who can obtain economic\n                  value from its disclosure or use; and (b) is the subject of\n                  efforts that are reasonable under the circumstances to\n                  maintain its secrecy; it being agreed that such information\n                  includes, without limitation, technical and non-technical\n                  data, a formula, a pattern, a compilation, a program, a\n                  device, a method, a technique, a drawing, a process, financial\n                  data, financial plans, product plans or a list of actual or\n                  potential customers or suppliers.\n\n                           5)       \"Intellectual Property\" shall mean all work\n                  product, property, data, documentation, \"know-how\", concepts\n                  or plans, inventions, discovery, compositions, innovations,\n                  computer programs, improvements, techniques, processes,\n                  designs, article of manufacture or information of any kind, or\n                  any new or useful improvements of any of the foregoing and any\n                  Trade Secrets, patents, copyrights, Confidential Information,\n                  mask work, trademark or service mark, relating in any way to\n                  the Company or its Affiliates and its or their business\n\n\n                                       9\n   10\n\n                  prepared, conceived, revised, discovered, developed, or\n                  created by Mr. Perhsing for the Company or its Affiliates or\n                  by using the Company's or its Affiliates' time, personnel,\n                  facilities, or material.\n\n                  b.       Nondisclosure: Ownership of Proprietary Property.\n\n                           1)       Nondisclosure. In recognition of the\n                  Company's need to protect its legitimate business interests,\n                  Mr. Hill hereby acknowledges that he has been given access to\n                  valuable Trade Secrets and Confidential Information; and he\n                  hereby covenants and agrees that he will use the Trade Secrets\n                  and Confidential Information for the Company's business\n                  purposes only, and that he will not for any reason, in any\n                  fashion, form or manner, other than as instructed by a duly\n                  authorized representative of the Company, copy, disclose,\n                  disseminate, communicate, transfer or otherwise convey to any\n                  Entity any item: (a) which is a Trade Secret, for so long as\n                  such item remains a trade secret under applicable law; or (b)\n                  which is Confidential Information, other than Trade Secrets,\n                  for a period of two (2) years from his termination.\n\n                           2)       Notification of Unauthorized Disclosure. \n                  Mr. Hill shall exercise his best efforts to ensure the\n                  continued confidentiality of all Trade Secrets and\n                  Confidential Information known by, disclosed or made available\n                  to him. He shall immediately notify the Company of any\n                  unauthorized disclosure or use of any Trade Secrets or\n                  Confidential Information of which he becomes aware. Mr. Hill\n                  shall assist the Company, to the extent necessary, in the\n                  procurement or protection of the Company's or its Affiliates'\n                  rights to or in any Intellectual Property, Trade Secrets or\n                  Confidential Information and, upon the Company's request,\n                  shall assist,\n\n\n                                       10\n   11\n\n                  to the extent necessary, in the procurement or protection of\n                  any Third Party's rights to or in any Intellectual Property,\n                  Trade Secrets or Confidential Information.\n\n                           3)       Ownership. To the greatest extent possible, \n                  any and all Intellectual Property shall be deemed to be \"work\n                  made for hire\" (as defined in the Copyright Act, 17 U.S.C.A.\n                  ss.ss. 101 et seq.), and Mr. Hill hereby unconditionally and\n                  irrevocably transfers and assigns to the Company or its\n                  Affiliates all rights, title and interest he currently has or\n                  in the future may have by operation of law or otherwise in or\n                  to any Intellectual Property, including, without limitation,\n                  all patents, copyrights, trademarks, service marks and other\n                  Intellectual Property rights and agrees that the Company or\n                  its Affiliates shall have the exclusive world-wide ownership\n                  of such Intellectual Property, and that no Intellectual\n                  Property shall be treated as or deemed to be a \"joint work\"\n                  (as defined by the Copyright Act) of Mr. Hill and the Company,\n                  its Affiliates or otherwise. Mr. Hill agrees to execute and\n                  deliver to the Company or its Affiliates any transfers,\n                  assignments, documents or other instruments which the Company\n                  or its Affiliates may deem necessary or appropriate to vest\n                  complete title and ownership of any Intellectual Property, and\n                  all rights therein, exclusively in the Company or its\n                  Affiliates, as the case may be.\n\n                           4)       Return of Materials. Upon Mr. Hill's \n                  termination, or at any point after that time upon the specific\n                  request of the Company, he shall return to the Company all\n                  written or descriptive materials of any kind belonging or\n                  relating to the Company or its Affiliates, including, without\n                  limitation, any Intellectual Property, Confidential\n                  Information and Trade Secrets, in his possession.\n\n\n                                       11\n   12\n\n         5.       Transfer of Employment to Southern or a Southern Subsidiary or\nAffiliate. In the event that Mr. Hill's employment by the Company is terminated\nand he shall become immediately re-employed by Southern or a subsidiary or an\naffiliate of Southern, the Company shall assign this Agreement to Southern or\nsuch subsidiary or affiliate, Southern shall accept such assignment or cause\nsuch affiliate or subsidiary to accept such assignment, such assignee shall\nbecome the \"Company\" for all purposes hereunder, including but not limited to\nthe Release attached hereto and incorporated herein as Exhibit C and the\nprofitability goals set forth on Exhibit A hereof shall be amended to\nappropriately reflect the performance of such assignee. In the event of such\nassignment, the expense of this Agreement shall be shared pro rata by the\nCompany and any such assignee based upon the number of months after the\neffective date of this Agreement that Mr. Hill is employed by the Company,\nand\/or Southern and\/or such affiliate or subsidiary of Southern, as the case may\nbe.\n\n         6.       Confidentiality and Legal Process. Mr. Hill represents and \nagrees that he will keep the terms, amount and fact of this Agreement\nconfidential and that he will not hereafter disclose any information concerning\nthis Agreement to any one other than his personal agents, including, but not\nlimited to, any past, present, or prospective employee or applicant for\nemployment with Company. Notwithstanding the foregoing, nothing in this\nAgreement is intended to prohibit Mr. Hill from performing any duty or\nobligation that shall arise as a matter of law. Specifically, Mr. Hill shall\ncontinue to be under a duty to truthfully respond to any legal and valid\nsubpoena or other legal process. This Agreement is not intended in any way to\nproscribe Mr. Hill's right and ability to provide information to any federal,\nstate or local government in the lawful exercise of such governments'\ngovernmental functions.\n\n\n                                       12\n   13\n\n         7.       Successors And Assigns; Applicable Law. Except as otherwise \nprovided in Paragraph 1.h., this Agreement shall be binding upon and inure to\nthe benefit of Mr. Hill and his heirs, administrators, representatives,\nexecutors, successors and assigns, and shall be binding upon and inure to the\nbenefit of Southern, the Company and their officers, directors, employees,\nagents, shareholders, parent corporation and affiliates, and their respective\npredecessors, successors, assigns, heirs, executors and administrators and each\nof them, and to their heirs, administrators, representatives, executors,\nsuccessors and assigns. This Agreement shall be construed and interpreted in\naccordance with the laws of the State of Georgia, United States of America\n(without giving effect to principles of conflicts of laws).\n\n         8.       Complete Agreement. This Agreement shall constitute the full \nand complete Agreement between the parties concerning its subject matter and\nfully supersedes any and all other prior Agreements or understandings between\nthe parties concerning the subject matter hereof. This Agreement shall not be\nmodified or amended except by a written instrument signed by both Mr. Hill and\nan authorized representative of Southern and the Company.\n\n         9.       Severability. The unenforceability or invalidity of any\nparticular provision of this Agreement shall not affect its other provisions,\nand to the extent necessary to give such other provisions effect, they shall be\ndeemed severable.\n\n         10.      Waiver Of Breach; Specific Performance. The waiver of a breach\nof any provision of this Agreement shall not operate or be construed as a waiver\nof any other breach. Each of the parties to this Agreement will be entitled to\nenforce its or his rights under this Agreement, specifically, to recover damages\nby reason of any breach of any provision of this Agreement and to exercise all\nother rights existing in its or his favor. The parties hereto agree and\nacknowledge that money damages may not be an adequate remedy for any breach of\nthe provisions of this Agreement\n\n\n                                       13\n   14\n\nand that any party may in its or his sole discretion apply to any court of law\nor equity of competent jurisdiction for specific performance or injunctive\nrelief in order to enforce or prevent any violations of the provisions of this\nAgreement.\n\n         11.      Unsecured General Creditor. The Company shall neither reserve \nnor specifically set aside funds for the payment of its obligations under this\nAgreement, and such obligations shall be paid solely from the general assets of\nthe Company. Notwithstanding that Mr. Hill may be entitled to receive the value\nof his benefit under the terms and conditions of this Agreement, the assets from\nwhich such amount may be paid shall at all times be subject to the claims of the\nCompany's creditors.\n\n         12.      No Effect On Other Arrangements. It is expressly understood \nand agreed that the payments made in accordance with this Agreement are in\naddition to any other benefits or compensation to which Mr. Hill may be entitled\nor for which he may be eligible, whether funded or unfunded, by reason of his\nemployment with the Company.\n\n         13.      Tax Withholding. There shall be deducted from each payment \nunder this Agreement the amount of any tax required by any governmental\nauthority to be withheld and paid over by the Company to such governmental\nauthority for the account of Mr. Hill.\n\n         14.      Compensation. Any compensation contributed on behalf of \nMr. Hill under this Agreement shall not be considered \"compensation,\" as the\nterm is defined in The Southern Company Employee Savings Plan, The Southern\nCompany Employee Stock Ownership Plan, The Southern Company Performance Sharing\nPlan or The Southern Company Pension Plan. Payments under this Agreement shall\nnot be considered wages, salaries or compensation under any other employee\nbenefit plan.\n\n\n                                       14\n   15\n\n         15.      No Guarantee of Employment. No provision of this Agreement \nshall be construed to affect in any manner the existing rights of the Company to\nsuspend, terminate, alter, modify, whether or not for cause, the employment\nrelationship of Mr. Hill and the Company.\n\n         IN WITNESS WHEREOF, this Agreement has been executed by the parties\nfirst listed above, effective this 5th day of October, 1999.\n\n\n                                        THE SOUTHERN COMPANY\n\n                                    By: \/s\/ A. W. Dahlberg\n                                        ----------------------------------------\n\n\n                                        SOUTHERN ENERGY RESOURCES, INC.\n\n                                    By: \/s\/ V. N. Booker\n                                        ----------------------------------------\n\n\n                                        Mr. Hill\n\n                                        \/s\/ R. D. Hill\n                                        ----------------------------------------\n\n\nAttest:\n\nBy: \/s\/ S. Marce Fuller\n    --------------------------\n\n\n                                       15\n   16\n\n                                    EXHIBIT A\n                         DEFERRED COMPENSATION AGREEMENT\n                         SCHEDULE OF PROFITABILITY GOALS\n                             FOR PERFORMANCE PERIOD\n\n         The Company shall achieve a Corporate Performance Factor under the\nSouthern Energy Resources, Inc. Short Term Incentive Plan of at least 1.0 for\neach of the calendar years 2000, 2001 and 2002 and an average of 1.5 for such\nthree-year period.\n\n         Achievement of the goals shall be assessed annually by the Chief\nExecutive Officers of Southern and the Company and documented in Exhibit B of\nthis Agreement.\n\n\n                                       16\n   17\n\n                                    EXHIBIT B\n                         DEFERRED COMPENSATION AGREEMENT\n                   ANNUAL DOCUMENTATION OF PROFITABILITY GOALS\n                             FOR PERFORMANCE PERIOD\n\n\n                                       17\n   18\n\n                                   EXHIBIT C\n\n                                RELEASE AGREEMENT\n\n         THIS RELEASE (\"Release') is made and entered into by and between\nRAYMOND D. HILL (\"Employee\"), THE SOUTHERN COMPANY (\"Southern\") and SOUTHERN\nENERGY RESOURCES, INC. and its successor or assigns (\"Company\").\n\n         WHEREAS, Employee, Southern and Company have agreed that Employee's\nemployment with _________________ shall terminate on ____________, _______;\n\n         WHEREAS, Employee, Southern and the Company have previously entered\ninto that certain Deferred Compensation Agreement, dated __________, 1999 \n(\"Agreement\"), that this Release is incorporated therein by reference;\n\n         WHEREAS, Employee, Southern and Company desire to delineate their\nrespective rights, duties and obligations attendant to such termination and\ndesire to reach an accord and satisfaction of all claims arising from Employee's\nemployment, and his termination of employment, with appropriate releases, in\naccordance with the Agreement;\n\n         WHEREAS, the Company desires to provide Employee with deferred\ncompensation in accordance with the Agreement for service he has or will provide\nfor the Company;\n\n         NOW, THEREFORE, in consideration of the premises and the agreements of\nthe parties set forth in this Release, and other good and valuable consideration\nthe receipt and sufficiency of which are hereby acknowledged, the parties\nhereto, intending to be legally bound, hereby covenant and agree as follows:\n\n\n                                       18\n   19\n         1.       RELEASE. Employee does hereby remise, release and forever\ndischarge Southern and the Company and their officers, directors, employees,\nagents, shareholders, parent corporation and affiliates, and their respective\npredecessors, successors, assigns, heirs, executors and administrators\n(collectively, \"Releasees\"), of and from all manner of actions and causes of\naction, suits, debts, claims and demands whatsoever at law or in equity, known\nor unknown, actual or contingent, including, but not limited to, any claims\nwhich have been asserted, or could be asserted now or in the future, against any\nReleasees arising under any and all federal, state or local laws and any common\nlaw claims, and including, but not limited to, any claims Employee may have\npursuant to the Age Discrimination in Employment Act and any claims to benefits\nunder any and all offer letters, employment or separation agreements, or bonus,\nseverance, workforce reduction, early retirement, out-placement, or other\nsimilar plans sponsored by the Company, now or hereafter recognized\n(collectively, \"Claims\"), which he ever had or now has or may in the future\nhave, by reason of any matter, cause or thing arising out of his employment\nrelationship and privileges, his serving as an employee of the Company or the\nseparation from his employment relationship or affiliation as an employee of the\nCompany as of the date of this Release against each of the Releasees.\nNotwithstanding the foregoing, Employee does not release any Claims under the\nAge Discrimination in Employment Act that may arise after his execution of this\nRelease.\n\n         2.       NO ASSIGNMENT OF CLAIM. Employee represents that he has not \nassigned or transferred, or purported to assign or transfer, any Claims or any\nportion thereof or interest therein to any party prior to the date of this\nRelease.\n\n         3.       DEFERRED COMPENSATION. In accordance with the Deferred \nCompensation Agreement, the Company agrees to pay the Employee or his spouse, as\nthe case may be, the amounts provided in Paragraphs 1 and 2 of the Agreement.\n\n\n                                       19\n   20\n\n          4.      NO ADMISSION OF LIABILITY. This Release shall not in any way\nbe construed as an admission by Southern, the Company or Employee of any\nimproper actions or liability whatsoever as to one another, and each\nspecifically disclaims any liability to or improper actions against the other or\nany other person, on the part of itself or himself, its or his employees or\nagents.\n\n          5.      VOLUNTARY EXECUTION. Employee warrants, represents and agrees \nthat he has been encouraged in writing to seek advice from anyone of his\nchoosing regarding this Release, including his attorney and accountant or tax\nadvisor prior to his signing it; that this Release represents written notice to\ndo so; that he has been given the opportunity and sufficient time to seek such\nadvice; and that he fully understands the meaning and contents of this Release.\nHe further represents and warrants that he was not coerced, threatened or\notherwise forced to sign this Release, and that his signature appearing\nhereinafter is voluntary and genuine. EMPLOYEE UNDERSTANDS THAT HE MAY TAKE UP\nTO TWENTY-ONE (21) DAYS TO CONSIDER WHETHER OR NOT HE DESIRES TO ENTER INTO THIS\nRELEASE.\n\n         6.       ABILITY TO REVOKE AGREEMENT. EMPLOYEE UNDERSTANDS THAT HE MAY\nREVOKE THIS RELEASE BY NOTIFYING THE COMPANY IN WRITING OF SUCH REVOCATION\nWITHIN SEVEN (7) DAYS OF HIS EXECUTION OF THIS RELEASE AND THAT THIS RELEASE IS\nNOT EFFECTIVE UNTIL THE EXPIRATION OF SUCH SEVEN (7) DAY PERIOD. HE UNDERSTANDS\nTHAT UPON THE EXPIRATION OF SUCH SEVEN (7) DAY PERIOD THIS RELEASE WILL BE\nBINDING UPON HIM AND HIS HEIRS, ADMINISTRATORS, REPRESENTATIVES, EXECUTORS,\nSUCCESSORS AND ASSIGNS AND WILL BE IRREVOCABLE.\n\n\n                                       20\n   21\n\nAcknowledged and Agreed To:\n\n                                          \"SOUTHERN\"\n\n                                          THE SOUTHERN COMPANY\n\n                                          By:   \/s\/ A. W. Dahlberg\n                                                --------------------------------\n\n                                          Its:\n                                                --------------------------------\n\n\n                                          \"COMPANY\"\n\n                                          SOUTHERN ENERGY RESOURCES, INC.\n\n                                          By:   \n                                                --------------------------------\n\n                                          Its:\n                                                --------------------------------\n\nI UNDERSTAND THAT BY SIGNING THIS RELEASE, I AM GIVING UP RIGHTS I MAY HAVE. I\nUNDERSTAND THAT I DO NOT HAVE TO SIGN THIS RELEASE.\n\n\n                                          \"EMPLOYEE\"\n         \n                                          RAYMOND D. HILL\n\n\n\n\n\n-----------------------------------       --------------------------------------\nDATE\n\n\n\nWITNESSED BY:\n\n\n-----------------------------------       \n\n-----------------------------------       \nDATE\n\n\n                                       21\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[8237],"corporate_contracts_industries":[9534],"corporate_contracts_types":[9539,9542],"class_list":["post-38736","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-mirant-corp","corporate_contracts_industries-utilities__electric","corporate_contracts_types-compensation","corporate_contracts_types-compensation__deferred"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/38736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=38736"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=38736"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=38736"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=38736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}