PERFORMANCE SHARE AWARD AGREEMENT for the Performance Period beginning January 1, 2010 and ending December 31, 2012 under the FPL GROUP, INC. AMENDED AND RESTATED LONG-TERM INCENTIVE PLAN
Exhibit
10(q)
for
the Performance Period beginning January 1, 2010
and
ending December 31, 2012
under
the
FPL
GROUP, INC. AMENDED AND RESTATED LONG-TERM INCENTIVE PLAN
This
Performance Share Award Agreement ("Agreement") between FPL Group, Inc.
(hereinafter called the "Company") and ___________________
(hereinafter called the "Participant") is dated February ___,
2010.
1. Grant of Performance Share Award
- The Company hereby grants to the Participant a Performance Share Award
("Award") which confers upon the Participant the right to receive a number of
shares ("Performance Shares") of the Company's common stock, par value $.01 per
share ("Common Stock"), determined as set forth in section 2, below. The
Participant's right to receive the Performance Shares shall be subject to the
terms and conditions set forth in this Agreement and in the Company's Amended
and Restated Long Term Incentive Plan, as amended from time to time (the
"Plan"). The performance period for which this Award is granted is
the period beginning on January 1, 2010 and ending on December 31,
2012 (such period hereinafter referred to as the "Performance
Period").
The
"Target" number of Performance Shares granted to the Participant for the
Performance Period is __________.
2. Payment of Performance Share
Award – (a) Payment of the Award shall be conditioned upon (i) the
achievement of the annual corporate performance objective established by the
Compensation Committee of the Board or such other Board committee designated to
administer the Plan, (including, for participants who are not executive
officers, a committee to whom administration has been delegated under the Plan)
(the "Committee") for the Company under the FPL Group, Inc. Amended and Restated
Executive Annual Incentive Plan (or any successor annual incentive plan,
hereinafter the "Annual Incentive Plan") for each of the three calendar years of
the Performance Period (each, a “Corporate Performance Objective”), (ii)
certification of such achievement for each year in the Performance Period by the
Committee and (iii) Committee approval of the number of shares to be paid to the
Participant. Subject to the provisions of the Plan, the Participant
shall have the right to payment of that percentage of the Participant's Target
number of Performance Shares set forth in section 1 hereof which is equal to the
average of the Participant's percentage achievement under the Annual Incentive
Plan for each year in the Performance Period, but in no event more than 160% of
such Target number of Performance Shares. In addition, the maximum number of
shares of Common Stock which a Participant may receive in any year under this
Agreement and pursuant to all other stock-based Awards which are also subject to
performance criteria is 250,000 shares of Common Stock. The Committee
has the discretion to reduce the payout, but not to increase it.
(b) Notwithstanding the
foregoing or the provisions of section 4 hereof, if (i) the Participant is a
party to an Executive Retention Employment Agreement with the Company
("Retention Agreement") and has not waived his or her rights, either entirely or
in pertinent part, under such Retention Agreement, and (ii) the Effective Date
(as defined in the Retention Agreement as in effect on the date hereof) has
occurred and the Employment Period (as defined in the Retention Agreement as in
effect on the date hereof) has commenced and has not terminated pursuant to
section 3(b) of the Retention Agreement (as in effect on the date hereof) then,
so long as the Participant is then employed by the Company or one of its
subsidiaries or affiliates:
(1) one-half
(1/2) of the Performance Shares shall vest upon a Change of Control (as defined
in the Retention Agreement as in effect on the date hereof) and shall be payable
as soon as practicable thereafter (but in all cases within thirty days of the
Change of Control) earned at a deemed achievement level equal to the higher of
(x) the Target number of shares of Common Stock set forth in this Agreement or
(y) the average level (expressed as a percentage of the Target number of shares
of Common Stock set forth in this Agreement) of achievement in respect of
similar performance stock-based awards which matured over the three fiscal years
immediately preceding the year in which the Change of Control occurred;
and
(2) the
other one-half (1/2) of the Performance Shares (earned at a deemed achievement
level calculated as set forth in subsection (1), above) shall vest on the date
after the Change of Control which is the earlier of (i) one year after the date
on which the Change of Control occurs, if the Participant is then employed by
the Company (or a subsidiary, affiliate or successor of the Company), or (ii)
the date on which the Participant's employment with the Company (or such
subsidiary, affiliate or successor of the Company) terminates; payable (whether
under clause (i) or clause (ii) of this section 2(b)(2)) as soon as practicable
thereafter (and in any event no later than the 15th day of the third month following the
end of the first taxable year in which the right to such payment
arises).
(c) Notwithstanding
the provisions of sections 2(a) and 4 hereof, if the Participant is not a party
to a Retention Agreement, the rights of the Participant upon a Change of Control
(as defined in the Plan as in effect on the date hereof) shall be as set forth
in section 9 of the Plan as in effect on the date hereof.
(d) If,
as a result of a Change of Control, the Common Stock is exchanged for or
converted into a different form of equity security and/or the right to receive
other property (including cash), payment in respect of the Performance Shares
shall, to the maximum extent practicable, be made in the same form.
3. Payment of Award - Awards
shall be payable in shares of Common Stock. Upon delivery of
Performance Shares to the Participant, the Company shall have the right to
withhold from any such distribution, in order to meet the Company's obligations
for the payment of withholding taxes, shares of Common Stock with a Fair Market
Value (as defined in the Plan as in effect on the date hereof) equal to the
minimum statutory withholding for taxes (including federal and state income
taxes and payroll taxes applicable to the supplemental taxable income relating
to such distribution) and any other tax liabilities for which the Company has an
obligation relating to such distribution. For the purpose of this
Agreement, the date of determination of Fair Market Value shall be the date as
of which the Participant's rights to payments under this Award are determined by
the Committee in accordance with section 2 hereof.
Delivery
of Performance Shares shall occur as soon as administratively practicable
following the Committee's determination of the Participant's right to such
delivery.
4. Termination of Employment –
Except as otherwise set forth herein and except to the extent that the Participant’s termination of
employment is governed by the terms of a Retention Agreement (in which event the
terms of such Retention Agreement shall control), in the event the
Participant terminates employment with the Company (or a subsidiary, affiliate
or successor of the Company) during the Performance Period, the Participant's
right to payment of the Award shall be determined as follows:
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(a)
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If
the Participant's termination of employment is due to resignation,
discharge, or retirement prior to age 65 which does not meet the condition
set forth in section 4(c), below, all rights to the Award shall be
immediately forfeited.
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(b)
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If
the Participant's termination of employment is due to (1) total and
permanent disability (as defined under the Company's executive long-term
disability plan as in effect on the date the Participant’s employment
terminates), (2) death, or (3) retirement on or after age 65 not meeting
the condition set forth in section 4(c),
below:
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(i)
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Participant's
Target number of Performance Shares for the Performance Period shall be
reduced to a prorated number of Performance Shares based on the number of
full days of Participant's service during the Performance Period;
and
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(ii)
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Participant's
right to Performance Shares under section 2 hereof shall be determined as
the Participant's Target number of Performance Shares, reduced as set
forth in section 4(b)(i), times the average of the Participant's
percentage achievement under the Annual Incentive Plan for each year in
the Performance Period (subject to a maximum of 160%); provided that,
subject to section 4(e) hereof, if the Participant is a Covered Employee
(as defined below) for any year during the Performance Period, the
Participant's percentage achievement for the year in which the
Participant's employment terminates, and any subsequent years in the
Performance Period, shall be deemed to be 100%;
and
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(iii)
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Payment
of Awards under this section 4(b) shall be made after the end of the
Performance Period at the time and in the manner specified in section 3
hereof.
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Notwithstanding
the foregoing, if, after termination of employment but prior to payment of any
Award, the Participant breaches any provision hereof, including without
limitation the provisions of section 9 hereof, the Participant shall immediately
forfeit all rights to the Award. For purposes of this Agreement, a
Participant is a “Covered Employee” if, the Participant is a Covered
Employee as defined by Section 162(m) of the Internal Revenue Code of 1986, as
amended, provided, that, as of the date of termination of the Participant’s
employment, such Section 162(m) is applicable to the Performance
Shares.
(c) If
the Participant's termination of employment is due to retirement on or after age
50, and if, but only if, such retirement is evidenced by a writing which
specifically acknowledges that this provision shall apply to such retirement and
is executed by the Company's chief executive officer (or, if the Participant is
an executive officer, by a member of the Committee or the chief executive
officer at the direction of the Committee, other than with respect to himself),
Participant's Target number of Performance Shares for the Performance Period
shall be as set forth in section 1 hereof and Participant's right to Performance
Shares under section 2 hereof shall be determined as the Participant's Target
number of Performance Shares times the average of the Participant's percentage
achievement under the Annual Incentive Plan for each year in the Performance
Period (subject to a maximum of 160%); provided that, subject to section 4(e)
hereof, if, for any year during the Performance Period, the Participant is a
Covered Employee, the Participant's percentage achievement for the year in which
the Participant's employment terminates, and any subsequent years in the
Performance Period, shall be deemed to be 100%. Payment of Awards
under this section 4(c) shall be made after the end of the Performance Period at
the time and in the manner specified in section 3
hereof. Notwithstanding the foregoing, if, after termination of
employment but prior to payment of any Award, the Participant breaches any
provision hereof, including without limitation the provisions of section 9
hereof, the Participant shall immediately forfeit all rights to the
Award.
(d) If
a Participant's employment is terminated during the Performance Period for any
reason other than as set forth in sections 4(a), (b) and (c) above, or if an
ambiguity exists as to the interpretation of those sections, the Committee shall
determine whether the Participant's Award shall be forfeited or whether the
Participant shall be entitled to full vesting or pro rata vesting based upon
full days of service completed during the Performance Period. Payment
of Awards under this section 4(d) shall be made after the end of the Performance
Period at the time and in the manner specified in section 3 hereof.
Notwithstanding the foregoing, if, after termination of employment but prior to
payment of any Award, the Participant breaches any provision hereof, including
without limitation the provisions of section 9 hereof, the Participant shall
immediately forfeit all rights to the Award.
(e) Notwithstanding anything to the
contrary in this Agreement, if, for any year during the Performance Period, the
Participant is a Covered Employee and the Participant’s employment is terminated
during the Performance Period due to retirement as set forth in section 4(b)(3)
or section 4(c), no portion of any Award that is subject to the achievement of
the Corporate Performance Objective (1) for the portion of the Performance
Period beginning January 1, 2010 and ending on December 31, 2010(“2010
Period”), or (2) for the portion of the Performance Period beginning January 1,
2011 and ending on December 31, 2011 (“2011 Period”), or (3) for the portion of
the Performance Period beginning January 1, 2012 and ending on December 31, 2012
(“2012 Period”), to which the Participant would otherwise be entitled
pursuant to section 4(b) or section 4(c) shall be payable unless and until the
date on which such Corporate Performance Objective shall have been achieved, as
certified by the Committee as contemplated by section 2(a). If the
Corporate Performance Objective is not achieved and certified for the 2010
Period, the Participant's percentage achievement for the 2010 Period shall be
deemed to be 0%. If the Corporate Performance Objective is not
achieved and certified for the 2011 Period, the Participant's percentage
achievement for the 2011 Period shall be deemed to be 0%. If the
Corporate Performance Objective is not achieved and certified for the 2012
Period, the Participant's percentage achievement for the 2012 Period shall be
deemed to be 0%.
[the
following applies only to Xx. Xxx] Notwithstanding the foregoing, if the
Employment Period (as defined in the Retention Agreement as in effect on the
date hereof) is not then in effect, and the Participant terminates employment
for Good Reason (as defined in the Participant's Employment Letter with the
Company (as in effect on the date hereof, the "Employment Letter") or the
Company terminates the Participant's employment without Cause (as defined in the
Employment Letter), prior to the end of the Performance Period, then the
Participant shall be entitled to a pro rata portion of this Performance Share
Award, calculated assuming that the Participant's percentage achievement for the
year in which the Participant's employment terminates, and any subsequent years
in the Performance Period, shall be deemed to be 100%; provided,
that no portion of any Award that is subject to the achievement of
the Corporate Performance Objective for (1) the portion of the Performance
Period beginning January 1, 2010 and ending on December 31, 2010 (“2010 Period”)
or (2) the portion of the Performance Period beginning January 1, 2011 and
ending on December 31, 2011 (the “2011 Period”) or (3) the portion of the
Performance Period beginning January 1, 2012 and ending on December 31,
2012 (the “2012 Period”) shall be payable unless and until the
date on which such Corporate Performance Objective shall have been achieved, as
certified by the Committee as contemplated by section 2(a). If the
Corporate Performance Objective is not achieved and certified for the 2010
Period, the Participant's percentage achievement for the 2010 Period shall be
deemed to be 0%. If the Corporate Performance Objective is not
achieved and certified for the 2011 Period, the Participant's percentage
achievement for the 2011 Period shall be deemed to be 0%. If the
Corporate Performance Objective is not achieved and certified for the 2012
Period, the Participant's percentage achievement for the 2012 Period shall be
deemed to be 0%. Notwithstanding the foregoing, if the Employment
Period (as defined in the Retention Agreement as in effect on the date hereof)
is not then in effect, and the Participant terminates employment due to death,
Disability, Retirement or an Approved Early Retirement (each as defined in the
Participant's Employment Letter), prior to the end of the Performance Period,
the Performance Share Award shall be earned in accordance with the Employment
Letter.
5. Adjustments - In the event of
any change in the outstanding shares of Common Stock by reason of any stock
dividend or split, recapitalization, reclassification, merger, consolidation,
combination or exchange of shares or similar corporate change, then the Target
number of Performance Shares granted hereunder shall be adjusted
proportionately. No adjustment will be made in connection with the
payment by the Company of any cash dividend on its Common Stock or in connection
with the issuance by the Company of any warrants, rights, or options to acquire
additional shares of Common Stock or of securities convertible into Common
Stock.
6. No Rights of Stock Ownership
- This grant of Performance Shares does not entitle the Participant to any
interest in or to any dividend, voting, or other rights normally attributable to
Common Stock ownership.
7. Nonassignability - The
Participant's rights and interest in the Performance Shares may not be sold,
transferred, assigned, pledged, exchanged, hypothecated or otherwise disposed of
except, in the event of death, to a designated beneficiary or by will or by the
laws of descent and distribution.
8. Effect Upon Employment - This
Agreement is not to be construed as giving any right to the Participant for
continuous employment by the Company or a subsidiary or
affiliate. The Company and its subsidiaries and affiliates retain the
right to terminate the Participant at will and with or without cause at any time
(subject to any rights the Participant may have under the Participant's
Retention Agreement [and Employment Letter, in the case of Xx.
Xxx]).
9. Protective Covenants - In consideration of the
Award granted under this Agreement, the Participant covenants and agrees as
follows (the "Protective Covenants"):
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(a)
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During
the Participant's employment with the Company, and for a two-year period
following the termination of the Participant's employment with the
Company, Participant agrees (i) not to compete or attempt to compete for,
or act as a broker or otherwise participate in, any projects in which the
Company has at any time done any work or undertaken any development
efforts, or (ii) directly or indirectly solicit any of the Company's
customers, vendors, contractors, agents, or any other parties with which
the Company has an existing or prospective business relationship, for the
benefit of the Participant or for the benefit of any third party, nor
shall the Participant accept consideration or negotiate or enter into
agreements with such parties for the benefit of the Participant or any
third party.
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(b)
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During
the Participant's employment with the Company and for a two-year period
following the termination of the Participant's employment with the
Company, the Participant shall not, directly or indirectly, on behalf of
the Participant or for any other business, person or entity, entice,
induce or solicit or attempt to entice, induce or solicit any employee of
the Company or its subsidiaries or affiliates to leave the Company's
employ (or the employ of such subsidiary or affiliate) or to hire or to
cause any employee of the Company to become employed for any reason
whatsoever.
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(c)
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The
Participant shall not, at any time or in any way, disparage the Company or
its current or former officers, directors, and employees, orally or in
writing, or make any statements that may be derogatory or detrimental to
the Company's good name or business
reputation.
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(d)
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The
Participant acknowledges that the Company would not have an adequate
remedy at law for monetary damages if the Participant breaches these
Protective Covenants. Therefore, in addition to all remedies to
which the Company may be entitled for a breach or threatened breach of
these Protective Covenants, including but not limited to monetary damages,
the Company will be entitled to specific enforcement of these Protective
Covenants and to injunctive or other equitable relief as a remedy for a
breach or threatened breach. In addition, upon any breach of
these Protective Covenants or any separate confidentiality agreement or
confidentiality provision between the Company and the Participant, all
Participant's rights to receive Performance Shares not theretofore
delivered under this Agreement shall be
forfeited.
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(e)
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For
purposes of this section 9, the term "Company" shall include all
subsidiaries and affiliates of the Company, including, without limitation,
Florida Power & Light Company and NextEra Energy Resources, LLC, and
their respective subsidiaries and affiliates (such subsidiaries and
affiliates being hereinafter referred to as the "FPL Entities"). The
Company and the Participant agree that each of the FPL Entities is an
intended third-party beneficiary of this section 9, and further agree that
each of the FPL Entities is entitled to enforce the provisions of this
section 9 in accordance with its
terms.
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(f)
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Notwithstanding
anything to the contrary contained in this Agreement, the terms of these
Protective Covenants shall survive the termination of this Agreement and
shall remain in effect.
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10. Successorsand Assigns- This Agreement
shall inure to the benefit of and shall be binding upon the Company and the
Participant and their respective heirs, successors and assigns.
11. Incorporation of Plan's Terms
- This Agreement is made under and subject to the provisions of the Plan, and
all the provisions of the Plan are also provisions of this Agreement (including,
but not limited to, the provisions of section 9 of the Plan pertaining to a
Change of Control as in effect on the date hereof; provided that if the
Participant is a party to a Retention Agreement, the provisions of section 2(b)
hereof shall supersede the provisions of the Plan with respect to a Change of
Control). If there is a difference or conflict between the provisions
of this Agreement and the mandatory provisions of the Plan, the provisions of
the Plan will govern. If there is a difference or conflict between
the provisions of this Agreement and a provision of the Plan as to which the
Committee is authorized to make a contrary determination, the provisions of this
Agreement will govern. Except as otherwise expressly defined in this
Agreement, all terms used herein are used as defined in the Plan as it may be
amended from time to time. The Company and Committee retain all
authority and powers granted by the Plan as it may be amended from time to time
not expressly limited by this Agreement. The Participant acknowledges
that he or she may not and will not rely on any statement of account or other
communication or document issued in connection with the Plan other than the
Plan, this Agreement, and any document signed by an authorized representative of
the Company that is designated as an amendment of the Plan or this
Agreement.
12. Interpretation - The
Committee has the sole and absolute right to interpret the provisions of this
Agreement.
13. Governing Law/Jurisdiction -
This Agreement shall be construed and interpreted in accordance with the laws of
the State of Florida, without regard to its conflict of laws
principles. All suits, actions, and proceedings relating to this
Agreement shall be brought only in the courts of the State of Florida located in
Palm Beach County or in the United States District Court for the Southern
District of Florida in West Palm Beach, Florida. The Company and the
Participant shall consent to the personal jurisdiction of the courts described
in this section for the purpose of all suits, actions, and proceedings relating
to the Agreement or the Plan. The Company and Participant each waive
all objections to venue and to all claims that a court chosen in accordance with
this section is improper based on a venue or a forum non conveniens
claim.
14. Amendment. This
Agreement may be amended, in whole or in part and in any manner not inconsistent
with the provisions of the Plan, at any time and from time to time, by written
agreement between the Company and the Participant.
15. Data Privacy. By
entering into this Agreement, the Participant: (i) authorizes the
Company or any of its subsidiaries or affiliates, and any agent of the Company
or a subsidiary or affiliate administering the Plan or providing Plan
recordkeeping services, to disclose to the Company or any of its subsidiaries or
affiliates such information and data as the Company or any such subsidiary or
affiliate shall reasonably request in order to facilitate the administration of
this Agreement; and (ii) authorizes the Company or any of its subsidiaries or
affiliates to store and transmit such information in electronic form, provided
such information is appropriately safeguarded in accordance with Company
policy.
By
signing this Agreement, the Participant accepts and agrees to all of the
foregoing terms and provisions and to all the terms and provisions of the Plan
incorporated herein by reference and confirms that he has received a copy of the
Plan.
IN
WITNESS WHEREOF, the parties have signed this Agreement as of the date and year
first above written.
FPL
GROUP, INC.
By: ________________________
Accepted: ___________________
Participant
