Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.1

2008 LONG TERM INCENTIVE AWARD PROGRAM FOR OFFICERS

RELIANT ENERGY, INC. 2002 LONG-TERM INCENTIVE PLAN

1. 2008 Program. This 2008 Long Term Incentive Award Program for Officers (“Program”) has
been adopted by the Compensation Committee (“Committee”) of the Board of Directors of Reliant
Energy, Inc. (the “Company”) pursuant to and subject to the terms and conditions of the Reliant
Energy, Inc. 2002 Long Term Incentive Plan (“Plan”). Awards under this Program will be made under
the 2008 Long Term Incentive Award Agreement (“Agreement”) attached hereto as Exhibit A.

2. Objectives. The Program is intended to provide incentives to a group of officers who can
make a significant contribution to the Company’s strategic objectives.

3. Relationship to the Plan. This Program is subject to all of the terms, conditions and
provisions of the Plan and administrative interpretations thereunder, if any. To the extent any
provision herein conflicts with the express terms of the Plan, the terms of the Plan will control.

4. Definitions. Except as defined in the Agreement, capitalized terms have the same meanings
ascribed to them under the Plan.

5. Eligibility and Participation. The Committee or its delegate will designate the Employees
who will participate in this Program and will determine individual awards which will be
memorialized in an Agreement with each Participant.

6. Awards. Awards will consist of Restricted Stock Units, Cash Units and Nonqualified Stock
Options.

7. Vesting.

(a) Unless earlier forfeited or satisfied in accordance with Section 8 of the Agreement,
Awards will vest as provided in the Agreement.

(b) In the event a Participant is no longer an employee of the Company for any reason on the
Vesting Date, all unvested Awards will be forfeited.

8. Change in Control. In the event of a Change in Control, all Awards will vest immediately
and will be settled by a cash payment as provided in the Agreement.

9. Effective Date. This Program is effective as of and the Grant Date is February 19, 2008.

	 	 	 	 	 
	 	RELIANT ENERGY, INC.

 	 
	 	By:  	     /s/ Karen D. Taylor
 	 
	 	 	Karen D. Taylor 	 
	 	 	Senior Vice President 	 
	 

 

 

 

EXHIBIT A

RELIANT ENERGY, INC.

2002 LONG TERM INCENTIVE PLAN

2008 LONG TERM INCENTIVE AWARD FOR OFFICERS

AWARD AGREEMENT

Pursuant to this award agreement (“Agreement”), as of February 19, 2008, Reliant Energy,
Inc. (the “Company”) hereby grants to «LEGAL» (the “Participant”), «stock_units»
Restricted Stock Units, «cash_units» Cash Units and rights (the “Nonqualified Stock Options” or
“Options”) to purchase from the Company «options» shares of Common Stock of the Company at $23.375
per share. The number of units and shares is subject to adjustment as provided in Section 15 of
the Reliant Energy 2002 Long-Term Incentive Plan (the “Plan”), subject to the terms, conditions and
restrictions described in the Plan and in this Agreement.

	1.	 	Relationship to the Plan; Definitions.

	 	(a)	 	This grant of Restricted Stock Units, Cash Units and Options 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 this date. If any provision of this Agreement conflicts with the express
terms of the Plan, the terms of the Plan control and, if necessary, the applicable
provisions of this Agreement are deemed amended so as to carry out the purpose and
intent of the Plan. References to the Participant also include the heirs or other
legal representatives of the Participant or the Participant’s estate.

	 
	 	(b)	 	Except as defined herein, capitalized terms have the same meanings as under
the Plan.

Cash Unit means a Cash Award with each unit equal to the Fair Market Value of one
share of Common Stock on the vesting date as determined pursuant to Section 3.

Disability means a physical or mental impairment of sufficient severity such that
the Participant is receiving benefits under the Company’s long-term disability
plan.

Employment means employment with the Company or any of its subsidiaries.

Options mean Nonqualified Stock Options.

Option Period means the period beginning on the date of this Agreement and ending
on the date the Options expire pursuant to Section 4.

Option Shares means shares of Common Stock which the Participant may have the right
to purchase under this Agreement.

 

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EXHIBIT A

Performance Goal means the standard established by the Committee for the
performance period from February 19, 2008 through February 19, 2011 to determine
whether the Participant’s Cash Units will vest. The Performance Goal is attached
as Exhibit I.

Restricted Stock Unit means a Stock Award with restrictions and subject to a
vesting condition as described in this Agreement.

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

	2.	 	Account. The Awards granted pursuant to this Agreement will 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 the Restricted Stock Units, the
Cash Units and the Options granted. Except as provided in Section 10, the Awards credited to
the bookkeeping account may not be sold, assigned, transferred, pledged or otherwise
encumbered until the Participant has been registered as the holder of shares of Common Stock
representing the Restricted Stock Units or exercised Options.

	 
	3.	 	Vesting. Unless earlier forfeited as described below, the Awards will vest as follows:

(i) The Restricted Stock Units will vest on February 19, 2011. If the Participant’s
Employment is terminated for any reason on or prior to February 19, 2011, the Participant’s
right to receive the Restricted Stock Units will be forfeited.

(ii) The Cash Units will vest, if at all, upon the Committee’s determination that the
Performance Goal has been met. If the Performance Goal has not been met by February 19,
2011, the Cash Units will be forfeited. If the Participant’s Employment is terminated for
any reason before the earlier of the date the Committee determines that the Performance
Goal has been met or February 19, 2011, the Participant’s right to receive the Cash Units
will be forfeited.

(iii) The Options will vest and become exercisable in three cumulative annual
installments as follows:

«one» Option Shares exercisable on February 19, 2009;

an additional «two» Option Shares exercisable on February 19, 2010;

and the remaining «three» Option Shares exercisable on February 19, 2011.

 

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EXHIBIT A

The Participant must be employed by the Company through the date of exercisability of each
installment for the Options to become exercisable with respect to additional shares of
Common Stock on such date.

	4.	 	Expiration of Option Period. The Option Period will expire on February 18, 2018 except as
follows:

(i) Upon termination of Employment of the Participant due to death or Disability, the
vested Options, if any, will expire upon the earlier of one year following the date of
termination of Employment or expiration of the Option Period.

(ii) Upon termination of Employment of the Participant because of Retirement, the
vested Options, if any, will expire upon the earlier of three years following the date of
termination of Employment or expiration of the Option Period.

(iii) Upon termination of Employment of the Participant by the Company or any of its
Subsidiaries for any reason or due to voluntary resignation by the Participant, the
unvested portion of the Options will expire immediately, and the vested Options, if any,
will expire upon the earlier of one year following the date of termination of Employment or
the expiration of the Option Period.

(iv) Notwithstanding anything herein to the contrary, in the event the Participant
dies following termination of Employment but prior to the expiration of the Option pursuant
to this Section 4, the portion of the Option exercisable upon the Participant’s death will
expire one year following the date of the Participant’s death or, if earlier, upon the
expiration of the Option Period.

	5.	 	Payment of Restricted Stock Units. Upon the vesting of Participant’s right to receive
Restricted Stock Units, a number of shares of Common Stock equal to the number of vested
Restricted Stock Units will be registered in the Participant’s name as soon as practicable
after the vesting date, but in no event later than March 15 of the year immediately following
the year during which the vesting date occurs. The Company will have the right to withhold
applicable taxes from any such payment or from other compensation payable to the Participant
at the time of such vesting and delivery pursuant to Section 12 of the Plan.

	 
	6.	 	Payment of Cash Units. Upon the vesting, if at all, of Participant’s right to receive Cash
Units, the Cash Units will be settled by a cash payment to the Participant as soon as
practicable after the vesting date, but in no event later than March 15 of the year
immediately following the year during which the vesting date occurs. The Company will have
the right to withhold applicable taxes from any such payment or from other compensation
payable to the Participant at the time of such vesting and delivery pursuant to Section 12 of
the Plan.

 

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EXHIBIT A

	7.	 	Exercise of Options. Subject to the limitations set forth herein and in the Plan, the
Options may be exercised pursuant to the procedures established by the
Committee. Unless otherwise permitted by the Committee, upon exercise the Participant must
provide to the Company or its designated representative, cash, check or money order payable
to the Company equal to the full amount of the purchase price for any shares of Common
Stock being acquired or, at the election of the Participant, Common Stock held by the
Participant for at least six months equal in value to the full amount of the purchase price
(or any combination of cash, check, money order or such Common Stock). For purposes of
determining the amount, if any, of the purchase price satisfied by payment in Common Stock,
the Common Stock will be valued at its Fair Market Value on the date of exercise. Any
Common Stock delivered in satisfaction of all or a portion of the purchase price must be
appropriately endorsed for transfer and assignment to the Company. The Company will have
the right to withhold applicable taxes from compensation otherwise payable to the
Participant at the time of exercise pursuant to Section 12 of the Plan.

	 
	8.	 	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
vesting date, (i) Participant’s right to receive Restricted Stock Units and Cash Units will
vest and will be settled by a cash payment to Participant equal to the product of (A) the Fair
Market Value per share of Common Stock on the date immediately preceding the date on which the
Change of Control occurs and (B) the total number of Restricted Stock Units and Cash Units
granted and (ii) Participant’s right to receive the Options (unless previously expired
pursuant to Section 4) shall be settled by a cash payment to the Participant equal to the
product of (A) the difference between (1) the Fair Market Value per share of Common Stock on
the date immediately preceding the date on which the Change in Control occurs and (2) the
exercise price of the Options and (B) the total number of unexercised Option shares,
regardless of whether such Option shares have become exercisable under Section 3. Such cash
payment will satisfy the rights of Participant and the obligations of the Company under this
Agreement in full.

	 
	9.	 	Notices. For purposes of this Agreement, notices and all other communications must be in
writing and will be deemed to have been given when personally delivered or when mailed by
United States registered or certified mail, return receipt requested, postage prepaid,
addressed to the Company at 1000 Main St., Houston, TX 77002, and to the Participant at the
address on record for the Participant in the Company’s human resources department or to such
other address as either party may furnish to the other in writing in accordance with this
Section 9.

	 
	10.	 	Successors and Assigns. This Agreement is binding upon and inures to the benefit of the
Participant, the Company and their respective permitted successors and assigns.
Notwithstanding anything herein to the contrary, the Restricted Stock Units, Cash Units and/or
Options are transferable by the Participant to Immediate Family Members, Immediate Family
Members Trusts and Immediate Family Member Partnerships pursuant to Section 14 of the Plan.

 

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EXHIBIT A

	11.	 	No Employment Guaranteed. Nothing in this Agreement gives the Participant any rights to (or
imposes any obligations for) continued Employment by the Company or any Subsidiary thereof or
successor thereto, nor does it give those entities any rights (or impose any obligations) with
respect to continued performance of duties by the Participant.

	 
	12.	 	Shareholder Rights. The Participant shall have no rights of a shareholder with respect to
the Restricted Stock Units or the Options unless and until the Participant is registered as
the holder of shares of Common Stock representing the Restricted Stock Units and/or the
Options on the records of the Company.

	 
	13.	 	Section 409A of the Code. It is intended that this Agreement and any Awards under this
Agreement satisfy the short-term deferral exclusion under Section 490A of the Code.

	 	 	 	 	 
	 	RELIANT ENERGY, INC.

 	 
	 	 	 
	 	Karen D. Taylor 	 
	 	Senior Vice President 	 
	 

 

6

 

Exhibit I

Performance Goal

A closing price for shares of the Company’s common stock on the New York Stock Exchange of $32.00
for 20 consecutive trading days any time between February 19, 2008 and February 19, 2011. If the
Company’s shares do not reach and maintain a closing price of $32.00 for 20 consecutive trading
days between February 19, 2008 and February 19, 2011, the Cash Units will be forfeited.

 

7Filed by Bowne Pure Compliance

 

Exhibit 10.1

AMENDMENT

TO

EXECUTIVE EMPLOYMENT AGREEMENT

This Amendment to Executive Employment Agreement (this “Amendment”) is entered into by
and among Allis-Chalmers Energy Inc., a Delaware corporation (“Allis-Chalmers”), AirComp
LLC, a Delaware limited liability company, (the “Company”) and Terrence P. Keane
(“Executive”).

RECITALS:

WHEREAS, the Company and Executive entered into that certain Employment Agreement dated as of
July 1, 2007 (the “Agreement”); and

WHEREAS, Executive has been promoted to Senior Vice President—Oilfield Services of
Allis-Chalmers; and

WHEREAS, Allis-Chalmers, the Company and Executive desire to amend such Agreement to reflect
such promotion and to make such other changes as hereinafter provided.

NOW THEREFORE, in consideration of the premises and the respective covenants and promises
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:

1. The word “Company” is hereby deleted in the definitions “Constructively Terminated” and
“Disability” in Section 1 and in Sections 2, 7, 8, 9, 10 and 11 and replaced with the word
“Allis-Chalmers.”

2. Section 3 of the Agreement is hereby deleted in its entirety and the following substituted
in its place:

“Duties. Executive shall be employed as the Senior Vice President of Allis-Chalmers and shall
report directly to the Chief Executive Officer of Allis-Chalmers and Board of Directors of
Allis-Chalmers. Executive agrees to devote such time as is necessary to perform his duties
attendant to his executive position with Allis-Chalmers, in a manner consistent with Executive’s
employment prior to the date hereof. Executive shall be allowed to engage in other activities as
an investor as well as participate in activities of charitable organizations of his choice so long
as they do not materially interfere with his duties for Allis-Chalmers, in particular Executive is
permitted to use two weeks of vacation to devote to service projects of his choice upon notifying
the Chief Executive Officer or Chief Financial Officer of Allis-Chalmers.”

3. Section 5(a)-(d) of the Agreement is hereby deleted in its entirety and the following
substituted in its place:

“Compensation and Benefits. In consideration for the services of Executive hereunder,
Allis-Chalmers shall compensate Executive as follows (except as set forth herein, Executive acknowledges payment in full of all amounts due to him for services rendered prior to the date
hereof):

 

 

 

(a) Salary. Allis-Chalmers shall pay Executive, every two weeks in arrears with its normal
payroll procedures, a salary which is equivalent to an annual rate of $275,000 per annum less
applicable statutory deductions and withholdings (the “Salary”) payable in accordance with
Allis-Chalmers regular payroll procedures currently in effect. Any increase in the Salary shall be
in the sole discretion of the Compensation Committee of the Board of Directors of Allis-Chalmers.

(b) Management Incentive Bonus. Executive shall be entitled to receive a bonus equal to (i)
50% of his annual base salary if the Company achieves its budgeted EBITDA goals for the six month period
between January 1, 2008 through June 30, 2008, and
(ii) 50% of his annual base salary if the Oilfield Services
segment of Allis-Chalmers achieves its budgeted EBITDA goals for the six month period between July 1, 2008 though December 31, 2008. For fiscal years 2009 and 2010, Executive shall be entitled to a
bonus equal to 100% of his annual base salary if the Oilfield Services segment of Allis-Chalmers meets its
budgeted EBITDA goals established for those years. All EBITDA goals shall be as established by the
Chief Executive Officer and Compensation Committee of Allis-Chalmers. Such bonus shall be paid
annually within 30 days following Allis-Chalmers’ release of its audited financial statements for
each fiscal year during the term hereof. Executive shall also be eligible to receive from
Allis-Chalmers such other annual management incentive bonuses as may be provided in management
incentive bonus plans adopted from time to time by Allis-Chalmers.

(c) Vacation. Executive shall be entitled to six (6) weeks paid vacation per year which shall
include two weeks utilized for family service projects that do not interfere with Executive’s
duties upon notification in advance to the Chief Executive Officer or Chief Operating Officer.
Unless otherwise approved by the Chief Executive Officer or Chief Operating Officer of
Allis-Chalmers, a maximum of ten days accrued vacation not taken in any calendar year shall be
carried forward and may be used in the next subsequent calendar year. Executive shall schedule his
paid vacation to be taken at times which are reasonably and mutually convenient to both
Allis-Chalmers and Executive.

(d) Insurance Benefits. Allis-Chalmers shall provide accident, health, dental, disability and
life insurance for Executive under the group accident, health, dental, disability and life
insurance plans as may be maintained by Allis-Chalmers for its full-time, salaried Executives.

4. The Agreement, as amended by this Amendment, constitutes the entire agreement and
understanding between the parties hereto relating to the subject matter hereof and all prior
agreements, proposals, negotiations, understandings and correspondence between the parties in this
regard, whether written or oral, are hereby superseded and merged herewith.

5. This Amendment may be executed simultaneously in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

 

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EXECUTED to be effective as of the 1st day of April, 2008.

ALLIS-CHALMERS:

ALLIS-CHALMERS ENERGY INC.,

a Delaware corporation

By: /s/ Theodore F. Pound III

Name: Theodore F. Pound III

Title: General Counsel & Secretary

EXECUTIVE:

/s/ Terrence P. Keane

Terrence P. Keane

COMPANY:

AIRCOMP LLC,

a Delaware limited liability company

By: /s/ Theodore F. Pound III

Name: Theodore F. Pound III

Title:  Vice President & Secretary

 

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