Document:

exv10w2

 

Exhibit 10.2

LONG-TERM INCENTIVE PLAN OF

CENTERPOINT ENERGY, INC.

STOCK AWARD AGREEMENT

(With Performance Goal)

          Pursuant to this Award Agreement, Centerpoint Energy, Inc. (the “Company”) hereby
grants to «FIRST_NAME» «LAST_NAME» (the “Participant”), an employee of the Company, on [GRANT DATE]
(the “Grant Date”), «RS» shares of Common Stock of the Company (the “Stock Award”), pursuant to the
Long-Term Incentive Plan of CenterPoint Energy, Inc. (the “Plan”), conditioned upon the
Company’s achievement of the Performance Goals established by the Committee over the course of the
Vesting Period, with such number of shares being subject to adjustment as provided in Section 14 of
the Plan, and further subject to the terms, conditions and restrictions described in the Plan and
as follows:

          1. Relationship to the Plan; Definitions. This Stock Award 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:

          “Disability” means that the Participant is both eligible for and in receipt of benefits under
the Company’s long-term disability plan.

          “Employment” means employment with the Company or any of its Subsidiaries.

          “Performance Goals” means the standards established by the Committee to determine in whole or
in part whether the shares of Common Stock under the Stock Award shall be earned, which are
attached hereto and made a part hereof for all purposes.

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

          “Vesting Date” means [DATE]

          “Vesting Period” means the period commencing on the Grant Date and ending on the Vesting Date.

          2. Establishment of Stock Award Account. The grant of shares of Common Stock of the Company
pursuant to this Stock Award shall be implemented by a credit to a bookkeeping account maintained
by the Company evidencing the accrual in favor of the

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Participant of the unfunded and unsecured right to receive such shares of Common Stock, 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. Except as otherwise
provided in Section 10 of this Award Agreement, the shares of Common Stock credited to the
Participant’s bookkeeping account may not be sold, assigned, transferred, pledged or otherwise
encumbered until the Participant has been registered as the holder of such shares of Common Stock
on the records of the Company, as provided in Section 5 or 6 of this Award Agreement.

          3. Vesting of Stock Award. Unless earlier forfeited or vested in accordance with Section 4
below or receipt of a distribution pursuant to Section 5 below, the Participant’s right to receive
100% of the shares of Common Stock under this Stock Award shall vest on the Vesting Date if the
Performance Goals established in connection with the grant of, and as a requirement to receive the,
Common Stock are determined by the Committee to have been achieved during the Vesting Period. If
the Committee determines that the Performance Goals have been achieved, the Participant’s right to
receive the Common Stock under this Award Agreement shall vest upon the Participant’s receipt of
written notice from the Committee of such determination. The Participant must be in continuous
Employment during the Vesting Period in order for the Common Stock to vest; otherwise, all such
shares shall be forfeited as of the Participant’s termination date.

          4. Accelerated Vesting and Forfeiture. If, prior to the end of the Vesting Date and prior to
the Participant’s receipt of any distribution pursuant to Section 5 below, the Participant’s
Employment is terminated due to (a) death, (b) Disability, or (c) Retirement, then, without regard
to the Performance Goals, the Participant shall vest in the right to receive a number of the shares
of Common Stock determined by multiplying (i) the total number of shares of Common Stock granted
under this Award Agreement by (ii) a fraction, the numerator of which is the number of days that
have elapsed from the Grant Date to the Participant’s termination date, and the denominator of
which is the total number of days in the Vesting Period. Such vested shares of Common Stock shall
be delivered to the Participant as soon as practicable following the Participant’s termination
date. All remaining unvested shares of Common Stock as of the Participant’s termination date shall
be forfeited as of such date.

          5. Distribution Upon a Change in Control. Notwithstanding anything herein to the contrary,
upon or immediately prior to the occurrence of any Change in Control of the Company, and without
regard to the Performance Goals, the Participant’s right to receive the unvested shares of Common
Stock under this Award Agreement shall be settled by a distribution to the Participant of (a) all
shares of Common Stock not previously vested or forfeited pursuant to Section 3 or Section 4 above,
plus (b) shares of Common Stock (rounded up to the nearest whole share) having a Fair Market Value
equal to the amount of dividends that would have been declared on the number of shares of Common
Stock determined under clause (a) above during the period commencing on the Grant Date and ending
on the date immediately preceding the date on which the Change in Control occurs, with such shares
of Common Stock registered in the name of the Participant and certificates representing such Common
Stock to be delivered to the Participant as soon as practicable after the date the Change in
Control occurs. In lieu of the foregoing distribution in shares, the Committee, in its sole
discretion, may direct that such distribution be made to the Participant in cash equal to (i) the
product of (x) the Fair Market

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Value per share of Common Stock on the date immediately preceding the date on which the Change
in Control occurs and (y) the number of shares of Common Stock not previously vested or forfeited
pursuant to Section 3 or Section 4 above, plus (ii) the amount of dividends that would have been
declared on the number of shares of Common Stock determined under clause (a) above during the
period commencing on the Grant Date and ending on the date immediately preceding the date on which
the Change in Control occurs, with such cash payment to be made as soon as practicable after the
date the Change in Control occurs. Such distribution, whether in the form of shares of Common
Stock or, if directed by the Committee, in cash, shall satisfy the rights of the Participant and
the obligations of the Company under this Award Agreement in full.

          6. Payment of Award. Upon the vesting of the Participant’s right to receive the shares of
Common Stock pursuant to Section 3 or Section 4 of this Award Agreement, a number of shares of
Common Stock equal to the number of vested shares of Common Stock under this Award Agreement shall
be registered in the name of the Participant and certificates representing such Common Stock shall
be delivered to the Participant as soon as practicable after the date upon which the Participant’s
right to such shares vested according to the provisions of Section 3 or Section 4 above. The
Company shall have the right to withhold applicable taxes from any such payment of the Common Stock
(including, but not limited to, from any amounts payable as provided in the following paragraph
with respect to dividends) or from other compensation payable to the Participant at the time of
such vesting and delivery pursuant to Section 11 of the Plan.

          If the Common Stock became vested pursuant to Section 3 or Section 4 above, upon delivery of
shares of Common Stock pursuant to the foregoing paragraph of this Section 6, the Participant shall
also be entitled to receive a cash payment equal to the sum of all dividends, if any, declared on
such shares of Common Stock after the Grant Date but prior to the date such shares of Common Stock
are delivered to the Participant.

          7. Confidentiality. The Participant agrees that the terms of this Award Agreement are
confidential and that any disclosure to anyone for any purpose whatsoever (save and except
disclosure to financial institutions as part of a financial statement, financial, tax and legal
advisors, or as required by law) by the Participant or his or her agents, representatives, heirs,
children, spouse, employees or spokespersons shall be a breach of this Award Agreement and the
Company may elect to revoke the grant made hereunder, seek damages, plus interest and reasonable
attorneys’ fees, and take any other lawful actions to enforce this Award Agreement.

          8. 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 CenterPoint
Energy, Inc., 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.

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          9. Shareholder Rights. The Participant shall have no rights of a shareholder with respect to
the shares of Common Stock granted under this Stock Award, unless and until the Participant is
registered as the holder of such shares of Common Stock.

          10. 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 shares of Common Stock are transferable by the Participant to
Immediate Family Members, Immediate Family Member trusts, and Immediate Family Member partnerships
pursuant to Section 13 of the Plan.

          11. 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, or
any successor thereto, nor shall it give such entities any rights (or impose any obligations) with
respect to continued performance of duties by the Participant.

          12. Compliance with Section 409A. It is the intent of the Company and the Participant that
the provisions of the Plan and this Agreement comply with Section 409A of the Internal Revenue Code
and related regulations and Department of the Treasury pronouncements (“Section 409A”). If any
provision provided herein would result in the imposition of an excise tax under the provisions of
Section 409A, the parties agree that any such provision will be modified as the Company determines
is appropriate to avoid imposition of such excise. In certain circumstances the Company may delay
the payment of the Stock Award until a date which is six months and two days after the date of the
Participant’s separation from service.

          13. Compliance with Recoupment Policy. Any amounts payable or paid under this Award
Agreement are subject to the recoupment policy of the Company as in effect from time to time.

          14. Modification of Award 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 10.3

LONG-TERM INCENTIVE PLAN OF

CENTERPOINT ENERGY, INC.

STOCK AWARD AGREEMENT

(Without Performance Goal)

          Pursuant to this Award Agreement, Centerpoint Energy, Inc. (the “Company”) hereby
grants to «FIRST_NAME» «LAST_NAME» (the “Participant”), an employee of the Company, on [GRANT DATE]
(the “Grant Date”), «RS» shares of Common Stock of the Company (the “Stock Award”), pursuant to the
Long-Term Incentive Plan of CenterPoint Energy, Inc. (the “Plan”), with such number of
shares being subject to adjustment as provided in Section 14 of the Plan, and further subject to
the terms, conditions and restrictions described in the Plan and as follows:

          1. Relationship to the Plan; Definitions. This Stock Award 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:

          “Disability” means that the Participant is both eligible for and in receipt of benefits under
the Company’s long-term disability plan.

          “Employment” means employment with the Company or any of its Subsidiaries.

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

          “Vesting Date” means [DATE]

          “Vesting Period” means the period commencing on the Grant Date and ending on the Vesting Date.

          2. Establishment of Stock Award Account. The grant of shares of Common Stock of the Company
pursuant to this Stock Award 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 such shares of Common Stock, 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. Except as otherwise provided in Section 10 of this Award Agreement,
the shares of Common Stock credited to the Participant’s bookkeeping account may not be sold, assigned,

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transferred, pledged or otherwise encumbered until the Participant has been registered as the
holder of such shares of Common Stock on the records of the Company as provided in Section 5 or 6
of this Award Agreement.

          3. Vesting of Stock Award. Unless earlier forfeited or vested in accordance with Section 4
below or receipt of a distribution pursuant to Section 5 below, the Participant’s right to receive
100% of the shares of Common Stock under this Stock Award shall vest on the Vesting Date. The
Participant must be in continuous Employment during the Vesting Period in order for the Common
Stock to vest; otherwise, all such shares shall be forfeited as of the Participant’s termination
date.

          4. Accelerated Vesting and Forfeiture. If, prior to the end of the Vesting Date and prior to
the Participant’s receipt of any distribution pursuant to Section 5 below, the Participant’s
Employment is terminated due to (a) death, (b) Disability, or (c) Retirement, then, the Participant
shall vest in the right to receive a number of the shares of Common Stock determined by multiplying
(i) the total number of shares of Common Stock granted under this Award Agreement by (ii) a
fraction, the numerator of which is the number of days that have elapsed from the Grant Date to the
Participant’s termination date, and the denominator of which is the total number of days in the
Vesting Period. Such vested shares of Common Stock shall be delivered to the Participant as soon
as practicable following the Participant’s termination date. All remaining unvested shares of
Common Stock as of the Participant’s termination date shall be forfeited as of such date

          5. Distribution Upon a Change in Control. Notwithstanding anything herein to the contrary,
upon or immediately prior to the occurrence of any Change in Control of the Company, the
Participant’s right to receive the unvested shares of Common Stock under this Award Agreement shall
be settled by a distribution to the Participant of (a) all shares of Common Stock not previously
vested or forfeited pursuant to Section 3 or Section 4 above, plus (b) shares of Common Stock
(rounded up to the nearest whole share) having a Fair Market Value equal to the amount of dividends
that would have been declared on the number of shares of Common Stock determined under clause (a)
above during the period commencing on the Grant Date and ending on the date immediately preceding
the date on which the Change in Control occurs, with such shares of Common Stock registered in the
name of the Participant and certificates representing such Common Stock to be delivered to the
Participant as soon as practicable after the date the Change in Control occurs. In lieu of the
foregoing distribution in shares, the Committee, in its sole discretion, may direct that such
distribution be made to the Participant in cash equal to (i) the product of (x) the Fair Market
Value per share of Common Stock on the date immediately preceding the date on which the Change in
Control occurs and (y) the number of shares of Common Stock not previously vested or forfeited
pursuant to Section 3 or Section 4 above, plus (ii) the amount of dividends that would have been
declared on the number of shares of Common Stock determined under clause (a) above during the
period commencing on the Grant Date and ending on the date immediately preceding the date on which
the Change in Control occurs, with such cash payment to be made as soon as practicable after the
date the Change in Control occurs. Such distribution, whether in the form of shares of Common
Stock or, if directed by the Committee, in cash, shall satisfy the rights of the Participant and the obligations of the Company under
this Award Agreement in full.

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          6. Payment of Award. Upon the vesting of the Participant’s right to receive the shares of
Common Stock pursuant to Section 3 or Section 4 of this Award Agreement, a number of shares of
Common Stock equal to the number of vested shares of Common Stock under this Award Agreement shall
be registered in the name of the Participant and certificates representing such Common Stock shall
be delivered to the Participant as soon as practicable after the date upon which the Participant’s
right to such shares vested according to the provisions of Section 3 or Section 4 above. The
Company shall have the right to withhold applicable taxes from any such payment of the Common Stock
(including, but not limited to, from any amounts payable as provided in the following paragraph
with respect to dividends) or from other compensation payable to the Participant at the time of
such vesting and delivery pursuant to Section 11 of the Plan.

          If the Common Stock became vested pursuant to Section 3 or Section 4 above, upon delivery of
shares of Common Stock pursuant to the foregoing paragraph of this Section 6, the Participant shall
also be entitled to receive a cash payment equal to the sum of all dividends, if any, declared on
such shares of Common Stock after the Grant Date but prior to the date such shares of Common Stock
are delivered to the Participant.

          7. Confidentiality. The Participant agrees that the terms of this Award Agreement are
confidential and that any disclosure to anyone for any purpose whatsoever (save and except
disclosure to financial institutions as part of a financial statement, financial, tax and legal
advisors, or as required by law) by the Participant or his or her agents, representatives, heirs,
children, spouse, employees or spokespersons shall be a breach of this Award Agreement and the
Company may elect to revoke the grant made hereunder, seek damages, plus interest and reasonable
attorneys’ fees, and take any other lawful actions to enforce this Award Agreement.

          8. 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 CenterPoint
Energy, Inc., 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.

          9. Shareholder Rights. The Participant shall have no rights of a shareholder with respect to
the shares of Common Stock granted under this Stock Award, unless and until the Participant is
registered as the holder of such shares of Common Stock.

          10. 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 shares of Common Stock

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are transferable by the Participant to Immediate Family Members, Immediate Family Member trusts, and
Immediate Family Member partnerships pursuant to Section 13 of the Plan.

          11. 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, or
any successor thereto, nor shall it give such entities any rights (or impose any obligations) with
respect to continued performance of duties by the Participant.

          12. Compliance with Section 409A. It is the intent of the Company and the Participant that
the provisions of the Plan and this Agreement comply with Section 409A of the Internal Revenue Code
and related regulations and Department of the Treasury pronouncements (“Section 409A”). If any
provision provided herein would result in the imposition of an excise tax under the provisions of
Section 409A, the parties agree that any such provision will be modified as the Company determines
is appropriate to avoid imposition of such excise. In certain circumstances the Company may delay
the payment of the Stock Award until a date which is six months and two days after the date of the
Participant’s separation from service.

          13. Compliance with Recoupment Policy. Any amounts payable or paid under this Award Agreement
are subject to the recoupment policy of the Company as in effect from time to time.

          14. Modification of Award 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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