Document:

Exhibit
10.04

 

Corporate Signature Copy

Return to Executive Compensation Department

 

XCEL ENERGY INC.

OMNIBUS INCENTIVE PLAN

PERFORMANCE SHARE AGREEMENT

 

This Agreement, dated and effective <<Month
Day, Year>>, by and between Xcel Energy Inc., a Minnesota corporation
(“Xcel Energy”) and «First» «MI» «Last» (the “Participant”) evidences an award
of performance shares and the applicable terms and conditions of the award.

 

1.             Performance Shares Awarded. Xcel Energy
awards the Participant «GRANTED» performance shares pursuant to the Xcel Energy
Inc. Omnibus Incentive Plan (the “Plan”), upon the terms and conditions of the
Plan and this Agreement.  The Plan as
currently in effect is incorporated by reference and the Participant
acknowledges the receipt of a copy thereof.

 

2.             Performance
Cycle.

 

(a)           The
performance cycle (the “Performance Cycle”) shall commence on the date of this
Agreement (the “Commencement Date”) and, except as otherwise provided in this
Agreement, will expire in full on <<Month Day, Year>> (the “Expiration
Date”).

 

(b)           The
Governance, Compensation and Nominating Committee of the Board of Directors is
designated as the Plan administrator (the “Committee”).  The Committee, however, has delegated certain
administrative duties to the Compensation department of Xcel Energy.

 

3.             Termination of Service.  If your employment with Xcel Energy and its
subsidiaries terminates for any reason, other than as provided below in this Section 3,
prior to the Expiration Date, all performance shares shall be forfeited on the
date of your termination.  If, however,
the Committee determines in its sole discretion that your employment with Xcel
Energy and its subsidiaries terminates:

 

(i)            at
a time when you are eligible for retirement under any defined benefit pension
plan of Xcel Energy and its subsidiaries in which you participate at the time
of your termination, you will continue to participate in the Plan per the terms
and conditions set forth in this Agreement; or

(ii)           due
to death or permanent and total disability or involuntarily  other than for cause, you will continue to
participate in the Plan on a prorated basis, determined by multiplying the
number of performance shares that would otherwise have been payable to you had
you been employed for the full Performance Cycle, by a fraction, the numerator
of which is the number of days during the Performance Cycle from the
Commencement Date through the date of your termination and the denominator of
which is the number of days in the Performance Cycle.

 

If an award is payable in the circumstances discussed in  subsection (i) or (ii) above,
it will be paid at the same time awards are paid to all other Plan participants
entitled to performance share payouts.

 

 

4.             Accounting
for Performance Shares. Each performance share, representing a
hypothetical share of Xcel Energy Common Stock, is designed to approximate and
track the fair market value price of one share of Xcel Energy Common
Stock.  Each performance share is
intended to represent an unfunded, unsecured promise to pay, and is designed to
remain among Xcel Energy’s general assets. 
Performance shares may not be sold, assigned, transferred, pledged or
otherwise encumbered by the Participant, except as herein after provided.

 

5.             Participant’s
Rights. Except as otherwise provided herein, Participant shall have
none of the rights of a stockholder, including dividends or the right to vote
any or all of the performance shares.  No
dividend equivalents will be provided with respect to the performance shares.

 

6.             Settlement of Performance Shares.

 

(a)           The
performance shares are contingently awarded subject to the condition that the
number of performance shares, if any, earned by the Participant upon the
expiration of  the Performance Cycle is
dependent (in the manner hereinafter set forth) on Xcel Energy’s Total
Shareholder Return (“TSR”) relative to the TSR of other companies in the Edison
Electric Institute (“EEI”) Electrics Index [that are included in the EEI
Electrics Index both as of the Commencement Date and the Expiration Date (or
their successors from a merger or other combination with another company
included in the EEI Electrics Index at the Commencement Date are included as of
the Expiration Date].  TSR for any
company, including Xcel Energy, shall be calculated in the same manner [that
EEI calculated total shareholder return as of <<Month Day, Year>>,
for companies in the EEI Electrics Index], and shall be measured by the total
return that a company’s common shareholders receive over the Performance Cycle
from an investment at the first day of the Performance Cycle.

 

The number of performance shares earned is dependent on the performance
ranking of Xcel Energy’s TSR for the Performance Cycle, as set forth below
(expressed in terms of Xcel Energy’s position in the EEI Electrics Index when
ranked by TSR for the Performance Cycle):

 

	
  XCEL ENERGY’S TSR PERCENTILE

  RANKING VS. EEI ELECTRICS INDEX

  	
   

  	
  PERCENT OF TARGET PERFORMANCE

  SHARES EARNED

  	
   

  
	
  [ ]th
  percentile or above

  	
   

  	
  200%

  	
   

  
	
  [ ]th
  percentile

  	
   

  	
  100%
  (target)

  	
   

  
	
  [ ]th
  percentile

  	
   

  	
  25%

  	
   

  
	
  Below [ ]th
  percentile

  	
   

  	
  0%

  	
   

  

 

Performance shares earned for performance between the percentiles shown
above will be determined by straight-line interpolation; provided, that, in all
cases, the number of performance shares which the Participant earns shall be a
whole number (disregarding any fraction).

 

Any performance shares awarded hereunder that the Participant does not
earn at the end of the Performance Cycle pursuant to the foregoing schedule shall
be forfeited.

 

The provisions of this Section 6(a) shall not affect in any
way any forfeitures under Section 3 or any provision regarding the payout
of performance shares under Section 8 upon the occurrence of a Change in
Control.

 

 

2

 

(b)           As
soon as administratively feasible following the Expiration Date and
certification in writing by the Committee as to the number of performance
shares owned by the Participant and the degree to which the performance goals
have been satisfied, but in no event later than two and a half months after the
end of the calendar year in which the expiration date occurs, Xcel Energy shall
cause to be paid to the Participant cash, an equivalent number of shares of
Common Stock or a combination thereof as determined by the Committee.  Payments may be made in a lump sum.  If the Participant dies prior to the payment
and under Section 3 (ii) or Section 6(a) above or Section 8
below would otherwise be entitled to receive payment of an award,  the performance shares shall be paid in cash to
the Participant’s designated beneficiary (if the Participant has designated a
beneficiary in writing delivered to the Xcel Energy Compensation department) or
if no beneficiary is designated, to the Participant’s estate.

 

7.             Changes
in Capitalization of Xcel Energy. 
If there is any change in outstanding Xcel Energy Common Stock by reason
of a stock dividend or distribution, stock split, capital reorganization,
reclassification, combination or exchange of shares, or by reason of merger,
consolidation, or other corporate reorganization, the Committee shall determine
the appropriate adjustment to Participant’s performance shares, if any, needed
to reflect such change.

 

8.             General
Restrictions.  In the event a
Change in Control occurs, as defined in the Plan, the Performance Cycle shall
terminate and all performance shares shall be paid to Participants as soon as
administratively feasible following determination of the Change in Control, but
in no event later than two and a half months after the end of the calendar year
in which the Change in Control occurs, according to the terms of the Plan.

 

9.             Withholding.  Xcel Energy may require the Participant to
remit to it, or may withhold from the award or from the Participant’s other
compensation, an amount sufficient to satisfy any applicable federal, state,
local tax, employment, FICA or other mandated withholding requirements in
regard to the performance shares in the year or years the performance shares
become taxable to the Participant. Participant may elect in accordance with the
Plan to satisfy the withholding requirement, in whole or in part, by having
Xcel Energy withhold performance shares from the award at the rate the
Committee determines satisfies applicable withholding requirements of the Code.
..  If no election is made, performance
shares will be withheld.

 

10.           Plan
and Plan Interpretations as Controlling.  The performance shares hereby awarded and the
terms and conditions herein set forth are subject in all respects to the terms
and conditions of the Plan, which are controlling.  All determinations and interpretations of the
Committee shall be binding and conclusive upon the Participant or his legal
representatives with regard to any question arising hereunder or under the
Plan.

 

11.           Participant
Service.  Nothing in this
Agreement shall limit the right of Xcel Energy or any of its subsidiaries to
terminate the Participant’s service as an officer or employee, or otherwise
impose upon Xcel Energy or any of its subsidiaries any obligation to employ or
accept the services of the Participant.

 

3

 

12.           Participant
Acceptance.  The Participant
shall signify acceptance of the terms and conditions of this Agreement by
signing in the space provided below and returning a signed copy to Xcel Energy.

 

IN WITNESS WHEREOF, the parties hereto have
caused this Performance Share Plan Agreement to be executed as of the date
first above written.

 

	
   

  	
  XCEL ENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Cynthia L. Lesher

  	
   

  	 

	
   

  	
   

  	
  Chief Administrative Officer and Chief HR
  Officer

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  ACCEPTED:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  «First» «MI» «Last»

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Date

  	
   

  	 

						

 

4Exhibit
10.05

 

Corporate Signature Copy

Return to Executive Compensation Department

 

XCEL ENERGY INC.

OMNIBUS INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

 

This Agreement, dated and effective <<Month
Day, Year>>,, by and between Xcel Energy Inc., a Minnesota
corporation (“Xcel Energy”) and «First» «MI» «Last» (the “Participant”)
evidences an award of restricted stock units and the applicable terms and
conditions of the award.

 

1.                                       Units Awarded. Xcel Energy awards the
Participant «GRANTED» restricted units of Common Stock of Xcel Energy (the “Units”)
pursuant to the Xcel Energy Inc. Omnibus Incentive Plan (the “Plan”), upon the
terms and conditions of the Plan and this Agreement.  The Plan as currently in effect is
incorporated by reference and the Participant acknowledges the receipt of a
copy thereof.

 

2.                                       Restrictions
on Transfer; Restricted Periods.

 

(a)                                  During the restricted
period hereinafter described (unless designated otherwise, referred to
collectively as the “Restricted Period” for both Earnings and Environmental),
the Units may not be sold, assigned, transferred, pledged, or otherwise
encumbered by the Participant, except as hereinafter provided.

 

(b)          The Restricted Period
shall commence on the date of this Agreement (the “Commencement Date”) and, except
as otherwise provided in this Agreement, will expire in full on the Earnings
Settlement Date and/or Environmental Settlement Date (as defined in Section 6).

 

(c)                                  The Governance,
Compensation and Nominating Committee of the Board of Directors are designated
as the Plan administrator (the “Committee”). 
The Committee, however, has delegated certain administrative duties to
the Compensation department of Xcel Energy.

 

(d)                                 The Committee shall
have the authority to determine, at any time during the Restricted Period, due
to capitalization requirements of Xcel Energy or other factors, that the Units
be converted to equivalent shares of Restricted Stock containing similar
restrictions on transfer.

 

3.                                       Termination of Service. If your
employment with Xcel Energy and its subsidiaries terminates for any reason,
other than as provided below in this Section 3, prior to the Settlement
Date, all Units shall be forfeited on the date of your termination.  If , however, The Committee determines in its
sole discretion that your employment with Xcel Energy and its subsidiaries
terminates for the following reasons:

 

(i)            at
a time when you are eligible for retirement under any defined benefit pension
plan of Xcel Energy and its subsidiaries in which you participate at the time
of your termination;

(ii)           due
to death or permanent and total disability; or

(iii)          involuntarily
other than for cause;

 

you will continue to participate in the Plan per the terms and
conditions set forth in this Agreement.

 

 

4.                                       Accounting
for Units. Each Unit, representing a hypothetical share of Common
Stock, is designed to approximate and track the fair market value price of one
share of Xcel Energy Common Stock.  Each
Unit is intended to represent an unfunded, unsecured promise to pay, and is
designed to remain among Xcel Energy’s general assets.

 

5.                                       Participant’s
Rights. Except as otherwise provided herein, Participant shall have
none of the rights of a stockholder, including the right to vote any or all of
the Units.  An amount representing
dividends payable on shares of Common Stock equal in number to the Units held
by the Participant on a dividend record date shall be deemed reinvested in
Common Stock and credited as additional Units as of dividend payment date. Any
additional Units will be subject to the terms and restrictions defined in this
Agreement.

 

6.                                       Settlement of Units.

 

(a)                                  Awarded Units plus
Units attributed to earned dividend equivalents shall be settled, and the
Restricted Period shall lapse (the “Settlement Date”) immediately after the
average of actual performance results (adjusted for actual megawatt hours) for
the three components of the Environmental Index measured as a percent of target
performance meets or exceeds 100%.  The
Environmental Index will be measured annually at the end of each fiscal
year.  However, in no event will the
performance goal be measured or the Settlement Date occur earlier than December 31,
2006.  Notwithstanding the above, if the
Settlement Date has not occurred within four years of the date of this Agreement,
the Settlement Date will not occur and all Units shall be forfeited.

 

(b)                                 As soon as
administratively feasible following the Settlement Date and certification in
writing by the Committee as to the number of Units to which the Participant is
entitled and that the performance goal has been satisfied, but in not event
later than two and a half months after the end of the calendar year in which
the Settlement Date occurs, Xcel Energy shall cause to be paid to the
Participant an equivalent number of shares of Common Stock with a cash
component representing fractional shares. Alternatively, at the discretion of
the Committee, Units may be paid to Participants in cash. If the Participant
dies prior to the payment, and under Section 6(a) above or Section d
below would otherwise be entitled to receive payment of an award, the Units
shall be paid in cash to the Participant’s designated beneficiary (if under the
Plan the Participant has designated a beneficiary in writing delivered to the
Xcel Energy Compensation department) or if no beneficiary is designated, to the
Participant’s estate.

 

(c)                                  For purposes of this
Agreement, the Environmental Index is based on megawatt hours of [  ] and the following targets:

 

	
   

  	
   

  	
  NOx

  (lbs/MWh)

  	
   

  	
  SO2 (lbs/MWh)

  	
   

  	
  CO2 (lbs/MWh)

  
	
  Target

  	
   

  	
  [ ]

  	
   

  	
  [ ]

  	
   

  	
  [ ]

  

 

7.                                       Changes
in Capitalization of Xcel Energy. 
If there is any change in the outstanding Common Stock by reason of a
stock dividend or distribution, stock split, capital reorganization,
reclassification, combination or exchange of shares, or by reason of merger,

 

2

 

consolidation, or other
corporate reorganization, the Committee shall determine the appropriate
adjustment to Participant’s Units, if any, needed to reflect such change.

 

8.                                       General
Restrictions.  In the event a
Change in Control occurs, as defined in the Plan, the Restricted Period shall
lapse and all outstanding Units shall be paid to Participants as soon as
administratively feasible following determination of the Change in Control, but
in no event later than two and a half months after the end of the calendar year
in which the Change in Control occurs, according to the terms of the Plan.

 

9.                                       Withholding.
Xcel Energy may require the Participant to remit to it, or may withhold from the
award or from the Participant’s other compensation, an amount sufficient to
satisfy any applicable federal, state, local tax, employment, FICA or other
mandated withholding requirements in regard to the award in the year or years
the award becomes taxable to the Participant. Participant may elect in
accordance with the Plan to satisfy the withholding requirement, in whole or in
part, by having Xcel Energy withhold Units from the award at the rate the
Committee determines satisfies applicable withholding requirements.  If no election is made, Units will be
withheld.

 

10.                                 Plan
and Plan Interpretations as Controlling. The Units hereby awarded and
the terms and conditions herein set forth are subject in all respects to the
terms and conditions of the Plan, which are controlling. All determinations and
interpretations of the Committee shall be binding and conclusive upon the
Participant or his legal representatives with regard to any question arising
hereunder or under the Plan.

 

11.                                 Participant
Service. Nothing in this Agreement shall limit the right of Xcel Energy
or any of its subsidiaries to terminate the Participant’s service as an officer
or employee, or otherwise impose upon Xcel Energy or any of its subsidiaries
any obligation to employ or accept the services of the Participant.

 

12.                                 Participant
Acceptance. The Participant shall signify acceptance of the terms and
conditions of this Agreement by signing in the space provided below and
returning a signed copy to Xcel Energy.

 

IN WITNESS WHEREOF, the parties hereto have
caused this Restricted Stock Unit Agreement to be executed as of the date first
above written.

 

	
   

  	
  XCEL ENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Cynthia L. Lesher

  	
   

  	 

	
   

  	
   

  	
  Chief Administrative Officer and Chief HR
  Officer

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  ACCEPTED:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  «First» «MI» «Last»

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Date

  	
   

  	 

						

 

3

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