Exhibit 10.1
TECO ENERGY GROUP
DEFERRED COMPENSATION PLAN
Crediting Contributions and Earnings to Accounts
------------------------------------------------
Pursuant to Action of Compensation Committee
--------------------------------------------
October 10, 2001
Pursuant to action of the Compensation Committee of the Board of Directors
of TECO Energy, Inc., the following methods, procedures and limitations apply to
crediting contributions and earnings to members' accounts under the TECO Energy
Group Deferred Compensation Plan.
1. Earnings credited based on interest or TECO common stock. Earnings
--------------------------------------------------------
will be credited to accounts under the plan either at a rate of interest or at a
rate of return based on the return on shares of common stock of TECO Energy
("common stock"). For each account the Benefits Committee (the "committee") will
establish and maintain a subaccount for amounts earning interest (the "cash
account") and a subaccount for amounts allocated to hypothetical shares of
common stock, which will be denominated on a share basis (the "stock account"),
as appropriate.
2. Cash Account only for Contributions and Earnings with respect to Years
----------------------------------------------------------------------
before January 1, 2002. All contributions with respect to years before January
- ----------------------
1, 2002, and all earnings on those contributions, will be credited to the cash
account and will be credited with earnings of the cash account.
3. Choice of Cash Account or Stock Account for Contributions and Earnings
----------------------------------------------------------------------
with respect to Years after December 31, 2001. Contributions with respect to
- ---------------------------------------------
years after December 31, 2001, will be credited to the cash account and/or the
stock account, as chosen by the member in his deferral agreement, and will be
credited with earnings of that same account. The member's choice of accounts is
irrevocable as to the deferred compensation to which it relates. If the member
fails to choose between the cash account and the stock account, the
contributions will be credited to the cash account.
4. Crediting initial amounts to accounts.
-------------------------------------
(a) Cash Account. The amount initially credited to a cash
------------
account will equal the dollar amount of the compensation that would
have been paid or vested but for the deferral. This amount will be
expressed in dollars.
(b) Stock Account. The amount initially credited to a stock
-------------
account will equal the dollar amount of the compensation that would
have been paid or vested but for the deferral. This will be expressed
as a number of hypothetical shares equal to the dollar amount deferred
divided by the mean of the high and low trading prices per share of
common stock on the New York Stock Exchange as of the date of
crediting to the account.
5. Crediting earnings to accounts.
------------------------------
(a) Cash Account. As of each date on which the employer pays its
------------
payroll, the committee will credit interest on the balance in the cash
account on the immediately preceding payroll date (or, in the case of
vesting, the immediately preceding vesting date if that is later than the
immediately preceding payroll date but is earlier than the current payroll
date) from the date of that previous payroll (or vesting) date through the
current payroll date, at the prime lending rate in effect on the first
business day of the month in which the current payroll is paid (as reported
in The Wall Street Journal) plus one percent, except that for periods
before January 1, 2002, interest will be credited on a monthly basis, and
for periods before January 1, 1994, interest will be credited at the rate
in effect under the plan from time to time.
(b) Stock Account. As of the date of payment of any cash dividend on
--------------
common stock, the committee will credit to the stock account a number of
shares equal to the cash dividend per share times the number of shares
credited to the stock account as of the dividend record date divided by the
mean of the high and low trading prices per share of common stock on the
New York Stock Exchange as of the trading day immediately preceding the
date of the transaction. As of the date of payment of any stock dividend on
common stock, the committee will credit to the stock account a number of
shares equal to the stock dividend declared times the number of shares
credited to the stock account as of the dividend record date. In the event
of any stock split, recapitalization, reorganization, merger,
consolidation, split-up, spin-off, exchange of shares or similar change
affecting the common stock, appropriate adjustment will be made in the
number of shares credited to the stock account. Shares will include
fractional shares computed to three decimal places. For each hypothetical
share (and fractional share) credited to the stock account as of the last
day of each month, the earnings credited to the stock account will include
any increase or decrease in per share value of common stock valued at the
mean of the high and low trading prices per share of common stock on the
New York Stock Exchange as of the last day of that month. The stock account
is maintained for bookkeeping purposes only. Shares credited to the stock
account are not considered actual shares of common stock of TECO Energy for
any purpose and a member will have no rights as a stockholder with respect
to such shares.
2