CenterPoint Energy 2014 Annual Report Download - page 171

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the Performance Cycle as of the date of the Participant’
s termination of Employment, and the denominator of
which is the total number of days in the Performance Cycle.
(iii)
Death or Disability . If the Participant’
s Employment is terminated due to death or Disability,
the Participant’
s right to receive the Target Shares shall vest on the date of termination of Employment in the
proportion of the number of days elapsed in the Performance Cycle as of the date of termination by the total
number of days in the Performance Cycle. The Participant’
s right to receive any additional shares pursuant to
this Award Agreement shall be forfeited at such time.
(iv)
Retirement . If the Participant’s Employment is terminated due to Retirement, the Participant’
s
right to receive shares pursuant to this Award Agreement, if any, shall vest on the date the Committee
determines that each Performance Goal has been met (as provided in Section 5) in a pro-
rata amount
determined by multiplying (1) the number of Vested Shares awarded to the Participant based upon the
Committee’
s determination of achievement of Performance Goals as provided in Section 5, by (2) a fraction,
the numerator of which is the number of days elapsed in the Performance Cycle as of the date of the
Participant’
s termination of Employment, and the denominator of which is the total number of days in the
Performance Cycle.
(c)
In accordance with the provisions of this Section 6, the Vested Shares shall be distributed as provided in
Section 7 hereof.
7.
Distribution Upon a Change in Control.
Notwithstanding anything herein to the contrary and without
regard to the Performance Goals, if there is a Change in Control during the Performance Cycle, upon the Change in Control
Closing Date, the Participant’
s right to receive the Target Shares shall vest and be settled by the distribution to the Participant
of:
(a)
shares of Common Stock equal to the Target Shares; 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 such shares determined under clause (a)
above during the period commencing at the beginning of the Performance Cycle and ending on the date immediately
preceding the Change in Control Closing Date;
with such shares of Common Stock registered in book-entry form with the Company’s transfer agent in the Participant’
s
name. 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 a lump cash payment equal to:
(x) the product of (i) the Fair Market Value per share of Common Stock on the date immediately preceding
the Change in Control Closing Date and (ii) the Target Shares; plus
(y) 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 at the beginning of the Performance Cycle and
ending on the date immediately preceding the Change in Control Closing Date.
4