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                                                                   EXHIBIT 10.3

                            CENTERPOINT ENERGY, INC.
                            LONG-TERM INCENTIVE PLAN

                             PERFORMANCE SHARE AWARD
                          20XX - 20XX PERFORMANCE CYCLE

            Pursuant to this Award Agreement, CENTERPOINT ENERGY, INC. (the
"Company") hereby grants to [NAME] (the "Participant"), an employee of the
Company, [NUMBER] performance shares of Common Stock (the "Target Performance
Shares"), such number of shares being subject to adjustment as provided in
Section 14 of the Long-Term Incentive Plan of CenterPoint Energy, Inc. (the
"Plan"), conditioned upon the Company's achievement of the Performance
Objectives over the course of the 20XX - 20XX Performance Cycle pursuant to the
Plan, and subject to the following terms and conditions:

            1. RELATIONSHIP TO THE PLAN; DEFINITIONS.

            This grant of Performance Shares is subject to all of the terms,
conditions and provisions of the Plan and administrative interpretations
thereunder, if any, which have been adopted by the Committee and are in effect
on the date hereof. Except as defined herein, capitalized terms shall have the
same meanings ascribed to them under the Plan. To the extent that any provision
of this Award Agreement conflicts with the express terms of the Plan, it is
hereby acknowledged and agreed that the terms of the Plan shall control and, if
necessary, the applicable provisions of this Award Agreement shall be hereby
deemed amended so as to carry out the purpose and intent of the Plan. References
to the Participant herein also include the heirs or other legal representatives
of the Participant. For purposes of this Award Agreement:

            "20XX - 20XX PERFORMANCE CYCLE" means the period from January 1,
      20XX to December 31, 20XX.

            "ACHIEVEMENT PERCENTAGE" means the percentage of achievement
      determined by the Committee in accordance with Section 3 that reflects the
      extent to which the Company achieved the Performance Objectives during the
      performance cycle applicable to this Award Agreement.

            "DISABILITY" means a physical or mental impairment of sufficient
      severity such that the Participant is both eligible for and in receipt of
      benefits under the long-term disability provisions of the Company's
      benefit plans.

            "EMPLOYMENT" means employment with the Company or any of its
      Subsidiaries.

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            "PERFORMANCE OBJECTIVES" means the standards established by the
      Committee to determine whether and to what extent the Participant's right
      to Performance Shares shall vest, which are attached hereto and made a
      part hereof for all purposes.

            "PERFORMANCE SHARES" means the shares of Common Stock potentially
      deliverable to Participant pursuant to this Award Agreement.

            "RETIREMENT" means termination of Employment on or after attainment
      of age 55 and with at least five years of service with the Company.

            "TARGET PERFORMANCE SHARES" means the actual number of Performance
      Shares initially granted to the Participant pursuant to this Award
      Agreement, with such number of Performance Shares to be awarded to the
      Participant at the close of the 20XX - 20XX Performance Cycle if the
      Company attains an Achievement Percentage of 100%.

            "VESTED PERFORMANCE SHARES" means the shares of Common Stock awarded
      to Participant following Participant's satisfaction of the vesting
      provisions of Section 4 and, if applicable, the determination by the
      Committee of the extent to which the Company has achieved the Performance
      Objectives for the 20XX - 20XX Performance Cycle pursuant to Section 3.

            2. ESTABLISHMENT OF RESTRICTED SHARE ACCOUNT. The grant of Target
Performance Shares pursuant to this Award Agreement shall be implemented by a
credit to a bookkeeping account maintained by the Company evidencing the accrual
in favor of the Participant of the unfunded and unsecured right to receive
shares of Common Stock of the Company, which right shall be subject to the
terms, conditions and restrictions set forth in the Plan and to the further
terms, conditions and restrictions set forth in this Award Agreement.

            3. AWARD OPPORTUNITY. The Performance Objectives established for the
20XX - 20XX Performance Cycle are attached hereto and made a part hereof for all
purposes. Except as otherwise provided in Sections 4 and 5, the number of
Performance Shares awarded to Participant shall be the product of the number of
Target Performance Shares and a percentage (the "Achievement Percentage") that
is based upon the Committee's determination of whether and to what extent the
Company achieves the Performance Objectives during the 20XX - 20XX Performance
Cycle.

            As soon as practicable after the close of the 20XX - 20XX
Performance Cycle, the Committee shall determine the extent to which the Company
has achieved the Performance Objectives. If the Company has performed at or
above the threshold level of achievement, the Achievement Percentage shall be
between

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50% and 150%, with a target level of achievement resulting in an Achievement
Percentage of 100%. If the Company has performed below the threshold level of
achievement, the Achievement Percentage shall be 0%. In no event shall the
Achievement Percentage exceed 150%. Upon completing its determination of the
level at which the Performance Objectives have been achieved, the Committee
shall notify the Participant of the number of Vested Performance Shares that
will be issued to the Participant pursuant to Section 6.

            4. VESTING OF PERFORMANCE SHARES.

            (a) Unless earlier forfeited or vested in accordance with paragraph
      (b) or Section 5, Participant's right to receive Performance Shares shall
      vest upon Participant's receipt of written notice from the Committee, as
      required by Section 3, of the level at which the Performance Objectives
      established for the 20XX - 20XX Performance Cycle have been achieved. Such
      notice shall be given by the Committee as soon as practical after the
      close of the 20XX - 20XX Performance Cycle in accordance with the terms of
      the Plan and this Award Agreement.

            (b) If Participant's Employment is terminated prior to the close of
      the 20XX - 20XX Performance Cycle:

                  (i) by the Company or any of its Subsidiaries for any reason
            or due to voluntary resignation by the Participant, Participant's
            right to receive Performance Shares shall be forfeited in its
            entirety as of such termination.

                  (ii) due to death, Disability, or Retirement, Participant's
            right to receive the Target Performance Shares shall vest at the
            time of such termination in the same proportion as the number of
            days elapsed in the 20XX - 20XX Performance Cycle as of the date of
            such termination of Employment bears to the total number of days in
            the 20XX - 20XX Performance Cycle and shall be delivered to
            Participant as soon as possible following such termination.
            Participant's right to receive additional Performance Shares shall
            be forfeited at such time.

            5. CASH PAYMENT UPON A CHANGE OF CONTROL. Notwithstanding anything
herein to the contrary, upon or immediately prior to the occurrence of any
Change of Control of the Company prior to the end of the 20XX - 20XX Performance
Cycle, Participant's right to receive Performance Shares, unless previously
forfeited pursuant to Section 4, shall be settled by a cash payment to
Participant equal to the product of (i) the Fair Market value per share of
Common Stock on the date immediately preceding the date on which the Change of
Control occurs and (ii) 150% of the number of Target Performance Shares. Such
cash payment shall satisfy the rights of Participant and the obligations of the
Company under this Award Agreement in full.

            6. PAYMENT OF AWARD.

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            (a) If Participant's right to receive Performance Shares has vested
      pursuant to Section 4, a number of shares of Common Stock equal to the
      number of Vested Performance Shares shall be registered in the name of the
      Participant and certificates representing such Common Stock shall be
      delivered to the Participant as soon as practical after the date upon
      which the Participant's right to such shares vested according to the
      provisions of Section 4. The Company shall have the right to withhold
      applicable taxes from any such payment of Vested Performance Shares or
      from other compensation payable to the Participant at the time of such
      vesting and delivery pursuant to Section 11 of the Plan.

            (b) Upon delivery of the Vested Performance Shares pursuant to
      paragraph (a), above, Participant shall also be entitled to receive a cash
      payment equal to the sum of all dividends, if any, announced or paid on
      the Vested Performance Shares after the commencement of the 20XX - 20XX
      Performance Cycle but prior to the date the Vested Performance Shares are
      delivered to the Participant.

            7. NOTICES. For purposes of this Award Agreement, notices to the
Company shall be deemed to have been duly given upon receipt of written notice
by the corporate secretary of the Company at 1111 Louisiana, Houston, Texas
77002, or to such other address as the Company may furnish to the Participant.

            Notices to the Participant shall be deemed effectively delivered or
given upon personal, electronic, or postal delivery of written notice to the
Participant, the place of Employment of the Participant, the address on record
for the Participant at the human resources department of the Company, or such
other address as the Participant hereafter designates by written notice to the
Company.

            8. SHAREHOLDER RIGHTS. The Participant shall have no rights of a
shareholder with respect to the Performance Shares, unless and until the
Participant is registered as the holder of shares of Common Stock representing
the Vested Performance Shares on the records of the Company as provided in
Section 6.

            9. SUCCESSORS AND ASSIGNS. This Award Agreement shall bind and inure
to the benefit of and be enforceable by the Participant, the Company and their
respective permitted successors and assigns except as expressly prohibited
herein and in the Plan. Notwithstanding anything herein or in the Plan to the
contrary, the Performance Shares are transferable by the Participant to
Immediate Family Members, Immediate Family Members Trusts, and Immediate Family
Member Partnerships pursuant to Section 13 of the Plan.

            10. NO EMPLOYMENT GUARANTEED. Nothing in this Award Agreement shall
give the Participant any rights to (or impose any obligations for) continued
Employment by the Company or any Subsidiary thereof or successor thereto, nor
shall it give such entities any rights (or impose any obligations) with respect
to continued performance of duties by the Participant.

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            11. MODIFICATION OF AGREEMENT. Any modification of this Award
Agreement shall be binding only if evidenced in writing and signed by an
authorized representative of the Company.

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                                                                    EXHIBIT 10.4

                            CENTERPOINT ENERGY, INC.
                            LONG-TERM INCENTIVE PLAN

                             PERFORMANCE UNIT AWARD
                          20XX - 20XX PERFORMANCE CYCLE

            Pursuant to this Award Agreement, CENTERPOINT ENERGY, INC. (the
"Company") hereby grants to [NAME] (the "Participant"), an employee of the
Company, [NUMBER] performance units representing the right to receive Common
Stock or cash ("Performance Units"), such number of Performance Units being
subject to adjustment as provided in Section 14 of the Long-Term Incentive Plan
of CenterPoint Energy, Inc. (the Plan), conditioned upon the Company's
achievement of the Performance Objectives over the course of the 20XX-20XX
Performance Cycle pursuant to the Plan, and subject to the following terms and
conditions:

            1. RELATIONSHIP TO THE PLAN; DEFINITIONS.

            This grant of Performance Units is subject to all of the terms,
conditions and provisions of the Plan and administrative interpretations
thereunder, if any, which have been adopted by the Committee and are in effect
on the date hereof. Except as defined herein, capitalized terms shall have the
same meanings ascribed to them under the Plan. To the extent that any provision
of this Award Agreement conflicts with the express terms of the Plan, it is
hereby acknowledged and agreed that the terms of the Plan shall control and, if
necessary, the applicable provisions of this Award Agreement shall be hereby
deemed amended so as to carry out the purpose and intent of the Plan. References
to the Participant herein also include the heirs or other legal representatives
of the Participant. For purposes of this Award Agreement:

            "20XX-20XX PERFORMANCE CYCLE" means the period from January 1,
      20XX to December 31, 20XX.

            "CUMULATIVE PERFORMANCE LEVEL" means the Company's combined level of
      achievement for all of the Performance Objectives over the course of the
      20XX-20XX Performance Cycle, as determined by the Committee pursuant to
      the procedure set forth in Section 2.

            "DISABILITY" means a physical or mental impairment of sufficient
      severity such that the Participant is both eligible for and in receipt of
      benefits under the long-term disability provisions of the Company's
      benefit plans.

            "EMPLOYMENT" means employment with the Company or any of its
      Subsidiaries.

            "PAYOUT VALUE" means the value of each Performance Unit to which
      Participant has a vested right following Participant's satisfaction of the
      vesting provisions of Section 3, determined in accordance with Section 2.

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            "PERFORMANCE OBJECTIVES" means the standards established by the
      Committee to measure the performance of the Company over the course of the
      20XX-20XX Performance Cycle, which are attached hereto and made a part
      hereof for all purposes, that will be used to determine the Payout Value
      of the Performance Units.

            "RETIREMENT" means termination of Employment on or after attainment
      of age 55 with at least five years of service with the Company.

            "TARGET LEVEL" means the Company's attainment of a Cumulative
      Performance Level of 100%.

            "THRESHOLD LEVEL" means the Company's attainment of a Cumulative
      Performance Level of 50%.

            2. AWARD OPPORTUNITY. The Payout Value of each Performance Unit
shall be based on the Company's Cumulative Performance Level of achievement of
the Performance Objectives over the course of the 20XX-20XX Performance Cycle as
determined by the Committee. The Performance Objectives established for the
20XX-20XX Performance Cycle are attached hereto and made a part hereof for all
purposes. As soon as practicable after the close of the 20XX-20XX Performance
Cycle, the Committee shall determine the extent to which the Company has
achieved the Performance Objectives. For each individual Performance Objective,
the Committee shall determine an objective-specific percentage of achievement,
ranging from 50% for the threshold level of achievement to a maximum of 150%,
with a target level of achievement resulting in 100% achievement. If the
Company's performance for a Performance Objective is below the threshold level,
the percentage of achievement for that Performance Objective shall be 0%. A
combined level of achievement for all of the Performance Objectives (the
"Cumulative Performance Level") shall be determined by weighting the percentages
of achievement for each Performance Objective according to the pre-determined
weighting factors assigned to each Performance Objective, which are attached
hereto. If the Cumulative Performance Level is at or above the Threshold Level
of performance, then the Payout Value shall be between $50 and $150 depending
upon the actual level of performance, with achievement at the Target Level of
performance resulting in a Payout Value of $100. In no event shall the Payout
Value exceed $150. If the Cumulative Performance Level is below the Threshold
Level of performance, the Payout Value shall be $0. Upon completing its
determination of the Payout Value, the Committee shall notify the Participant of
the Payout Value and the number of shares of Common Stock and/or the amount of
cash that will therefore be delivered to the Participant pursuant to Section 5.

            3. VESTING OF PERFORMANCE UNITS.

            (a) Unless earlier forfeited or vested in accordance with paragraph
      (b) or Section 4, Participant's right to Performance Units shall vest upon
      Participant's receipt of written notice from the Committee, as required by
      Section 2, of the Payout Value of such Performance Units. Such notice
      shall be given by the Committee as soon as practical following the close
      of the 20XX-20XX Performance Cycle in accordance with the terms of the
      Plan and this Award

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      Agreement.

            (b) If Participant's Employment is terminated prior to the close of
      the 20XX-20XX Performance Cycle:

                  (i) by the Company or any of its Subsidiaries for any reason
            or due to voluntary resignation by the Participant, Participant's
            right to receive Performance Shares shall be forfeited in its
            entirety as of such termination.

                  (ii) due to death, Disability, or Retirement, Participant's
            right to Performance Units shall vest at the time of such
            termination in the same proportion as the number of days elapsed in
            the 20XX-20XX Performance Cycle as of the date of such termination
            of Employment bears to the total number of days in the 20XX-20XX
            Performance Cycle, and the shares of Common Stock and/or cash then
            payable to the Participant pursuant to Section 5 shall be delivered
            to participant as soon as possible after such termination. The
            Payout Value of such vested Performance Units shall be the value at
            the Target Level of performance as set forth in Section 2.
            Participant's right to receive additional Performance Units shall be
            forfeited at such time.

            4. CASH PAYMENT UPON A CHANGE OF CONTROL. Notwithstanding anything
herein to the contrary, upon or immediately prior to the occurrence of any
Change of Control of the Company prior to the end of the 20XX-20XX Performance
Cycle, Participant's right to receive Performance Units, unless previously
forfeited pursuant to Section 3, shall be settled by a cash payment to
Participant equal to the product of the number of Performance Units granted
hereunder and the maximum Payout Value as set forth in Section 2. Such cash
payment shall satisfy the rights of Participant and the obligations of the
Company under this Award Agreement in full.

            5. PAYMENT OF AWARD.

            (a) If Participant's right to Performance Units has vested pursuant
      to Section 3, Participant shall be entitled to receive payment in one of
      the following forms, to be decided by the Committee:

                  (i) a number of shares of Common Stock equal to (x) the
            product of the Payout Value and the number of Performance Units
            granted hereunder, divided by (y) the Fair Market Value of Common
            Stock (rounded down to the nearest whole share) on the date the
            Committee determines the Payout Value pursuant to Section 2;

                  (ii) a cash payment equal to the product of the Payout Value
            and the number of Performance Units granted hereunder; or

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                  (iii) any combination of (i) and (ii), above, the combined
            Fair Market Value of which is not to exceed the product of the
            Payout Value and the number of Performance Units granted hereunder.

            Any shares of Common Stock so awarded shall be registered in the
      name of the Participant, and any certificates representing such Common
      Stock and/or payment of cash shall be delivered to the Participant as soon
      as practical after the Participant has vested pursuant to Section 3. The
      Company shall have the right to withhold applicable taxes from any such
      payment of cash or Common Stock, or from other compensation payable to the
      Participant, at the time of such vesting and delivery pursuant to Section
      11 of the Plan.

            (b) Upon delivery of shares of Common Stock and/or a cash payment to
      Participant pursuant to Section 4 or paragraph (a), above, Participant
      shall also be entitled to receive a cash payment equal to the sum of all
      dividends paid, if any, on such shares of Common Stock after the
      commencement of the 20XX-20XX Performance Cycle but prior to the date such
      shares of Common Stock are delivered to the Participant.

            6. NOTICES. For purposes of this Award Agreement, notices to the
Company shall be deemed to have been duly given upon receipt of written notice
by the corporate secretary of the Company at 1111 Louisiana, Houston, Texas
77002, or to such other address as the Company may furnish to the Participant.

            Notices to the Participant shall be deemed effectively delivered or
given upon personal, electronic, or postal delivery of written notice to the
Participant, the place of Employment of the Participant, the address on record
for the Participant at the human resources department of the Company, or such
other address as the Participant hereafter designates by written notice to the
Company.

            7. SHAREHOLDER RIGHTS. The Participant shall have no rights of a
shareholder with respect to the shares of Common Stock potentially granted
hereunder unless and until the Participant is registered as the holder of shares
of Common Stock on the records of the Company as provided in Section 5.

            8. SUCCESSORS AND ASSIGNS. This Award Agreement shall bind and inure
to the benefit of and be enforceable by the Participant, the Company and their
respective permitted successors and assigns except as expressly prohibited
herein and in the Plan. Notwithstanding anything herein or in the Plan to the
contrary, the Performance Shares are transferable by the Participant to
Immediate Family Members, Immediate Family Members Trusts, and Immediate Family
Member Partnerships pursuant to Section 13 of the Plan.

            9. NO EMPLOYMENT GUARANTEED. Nothing in this Award Agreement shall
give the Participant any rights to (or impose any obligations for) continued
Employment by the Company or any Subsidiary thereof or successor thereto, nor
shall it give such entities any rights (or impose any obligations) with respect
to continued performance of duties by the Participant.

                                      -4-

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            10. MODIFICATION OF AGREEMENT. Any modification of this Award
Agreement shall be binding only if evidenced in writing and signed by an
authorized representative of the Company.

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