Exhibit 10.2

 

CONSOLIDATED EDISON, INC.

20     Restricted Stock Unit Agreement

 

This Agreement (the “Agreement”) is entered into as of                 , 20    
between Consolidated Edison, Inc. (the “Company”) and                      (the
“Employee”).

 

This Agreement allocates Restricted Stock Units (the “Units”) to the Employee
under the Consolidated Edison, Inc. Long Term Incentive Plan (the “Plan”) as
follows:

 

   

Number

--------------------------------------------------------------------------------

 

Performance Period

--------------------------------------------------------------------------------

 

Payout Date

--------------------------------------------------------------------------------

20     Grant:

           Units                        –                        _________

 

This Award is subject to the terms and conditions set forth in this Agreement
and the Plan. The terms of this Award are subject in all respects to the
provisions of the Plan, which are incorporated herein by reference. All
capitalized terms not otherwise defined herein shall have the same meanings as
set forth in the Plan.

 

Each Unit shall represent the right, upon vesting, to receive one Share of
Stock, the cash value of one Share of Stock, or a combination thereof. The cash
value of a Unit shall equal the closing price of a Share of Stock in the
Consolidated Reporting System as reported in the Wall Street Journal or in a
similarly readily available public source for the trading day immediately prior
to the applicable transaction date. If no trading of Shares of Stock occurred on
such date, the closing price of a Share of Stock in such System as reported for
the preceding day on which sales of Shares of Stock occurred shall be used.

 

Performance Factors: Fifty percent of the Units for the grant will be earned
based on the Company’s Total Shareholder Return (TSR) compared to the S & P
Electric Utilities Index over the Performance Period. The remaining fifty
percent of the Units for the grant will be earned based on the corporate average
of the Executive Incentive Plan Award* over the Performance Period. The actual
number of Units earned can range from 0 to 150% of the above allocation for the
Grant. The final determination of the number of Units to be awarded will be made
by the Management Development and Compensation Committee (“Committee”) of the
Board. The Units vest after the Performance Period when they are determined and
awarded by the Committee.

--------------------------------------------------------------------------------

* Or, for certain officers, Orange and Rockland Utilities, Inc.’s Annual Team
Incentive Plan or goals relating to the Company’s unregulated subsidiaries

--------------------------------------------------------------------------------

1. Consequences of Separation from Service and Death. In the event of the
Employee’s Separation from Service with the Company or its subsidiaries or death
prior to the vesting date, the Employee’s rights under this Agreement will be as
set forth below:

 

  a. If the Employee Separates from Service other than by reason of retirement,
disability or death, during a Performance Period his/her award is completely
forfeited.

 

  b. If the Employee dies during a Performance Period, his/her award is prorated
based on the actual period of service during the Performance Period and is
awarded as soon as administratively possible after his/her death. The
determination of the performance factors will be made by the Vice President of
Human Resources of Consolidated Edison Company of New York, Inc. using the
indicators as of the end of the month for the Total Shareholder Return and using
the prior year(s) corporate average(s) for Executive Incentive Plan Awards.

 

  c. If the Employee Separates from Service by reason of retirement or
disability, then his/her award is prorated based on the actual period of service
during the Performance Period and is awarded, as soon as administratively
possible, at the end of the Performance Period based on the performance.

 

2. Form of Payout. The Units will be paid in a lump sum, either in Shares of
Stock, in cash, or a combination. Cash can be deferred into the Deferred Income
Plan (“DIP”).

 

3. Deferrals. Employees will have a one-time election to defer the receipt of
the cash value of the Award into the DIP or to defer the receipt of the Shares,
or a combination of cash or Shares. Deferral election forms must be submitted by
December 31 of the year before the Grant.

 

4. Dividend or Dividend Equivalent Payments.

 

  a. No Dividend or Dividend Equivalent payments will be made until the Units
vest.

 

  b. If the Employee receives Shares at the time of vesting, he or she will be
entitled to receive dividends on the Shares when the dividends are paid.

 

  c. However, if the Employee elects prior to the Grant to defer the receipt of
the Shares, he or she will be entitled to receive the Dividend Equivalent
payments on the Shares once the Shares vest. These Dividend Equivalent payments
can be received as additional Stock, cash, or as cash deferred into the DIP.

 

- 2 -

--------------------------------------------------------------------------------

  d. If at the time of vesting, the Employee receives a cash payment or defers
the cash into the DIP, he or she will not receive Dividend Equivalent payments.

 

  e. Dividend Equivalent payments are made on the Dividend Payment Date, which
is the date the Company pays any dividend on outstanding Shares based on the
number of Units owned as of the record date for such dividend.

 

5. Deferral Election for Dividend Equivalent Payments. A deferral of Dividend
Equivalent payments must be made at the same time as the deferral of the receipt
of the Restricted Stock Unit Award. At that time the Employee can elect to
receive the Dividend Equivalent payments as additional Stock to be distributed
or deferred to a future date, or as cash to be distributed or deferred into the
DIP.

 

6. No Right to Continued Employment. Nothing contained in this Agreement shall
confer on the Employee any right to continue in the employ of the Company or its
subsidiaries or shall limit the Company’s rights to terminate the Employees at
any time, provided, however, that nothing in this Agreement shall affect any
other contractual rights existing between the Employee and the Company or its
subsidiaries.

 

7. Leave of Absence. If the Employee is officially granted a leave of absence
for illness, military or governmental service or other reasons by the Company or
its subsidiaries, for purposes of this Award, such leave of absence shall not be
treated as a Separation from Service.

 

8. Payment. Subject to any deferral election, once Units vest, the Company shall
pay, as soon as administratively possible, the Employee (a) the cash value of
the Shares of Stock represented by the Units, (b) the Stock, or (c) a
combination of cash and Stock. Prior to vesting the Units represent an unfunded
and unsecured promise to pay the Employee the cash value of Shares of Stock or
Stock upon vesting thereof.

 

9. Transferability. Except as may otherwise be authorized by the Committee in
accordance with the Plan, this Award shall not be transferable other than by
will or the laws of descent and distribution. Any attempted transfers shall be
null and void and of no effect.

 

10. Tax Withholding. The Company may make such provision and take such steps as
it deems necessary or appropriate for the withholding of any taxes that the
Company is required by law or regulation of any governmental authority, whether
federal, state or local, domestic or foreign, to withhold in connection with
this Award.

 

 

- 3 -

--------------------------------------------------------------------------------

11. Miscellaneous. The Agreement: (a) shall be binding upon and inure to the
benefit of any successor of the Company; (b) shall be governed by the laws of
the State of New York, and any applicable laws of the United States of America;
(c) may not be amended except in writing; and (d) shall in no way affect the
Employee’s participation or benefits under any other plan or benefit program
maintained or provided by the Company. In the event of a conflict between this
Agreement and the Plan, the terms and conditions of the Plan shall govern.

 

12. Acknowledgement. The Employee acknowledges that he or she may request a copy
of the Plan from the Company’s Secretary at any time.

 

This Agreement has been executed by the undersigned:

 

CONSOLIDATED EDISON, INC.         By:  

 

--------------------------------------------------------------------------------

      By:  

 

--------------------------------------------------------------------------------

    Name:                     Title:                    

 

- 4 -