Form of RESTRICTED STOCK AWARD AGREEMENT under the FPL GROUP, INC. AMENDED AND RESTATED LONG-TERM INCENTIVE PLAN
Exhibit
10(q)
Form
of
under
the
FPL
GROUP, INC. AMENDED AND RESTATED LONG-TERM INCENTIVE PLAN
This Restricted Stock Award Agreement
("Agreement"), between FPL Group, Inc. (hereinafter called the "Company") and
___________________
(hereinafter called the "Participant") is dated ______ ___,
20___.
1. Grant of Restricted Stock
Award - The Company hereby grants to the Participant _________ shares of the
Company's common stock, par value $.01 per share ("Common Stock"), which shares
(the "Awarded Shares") shall be subject to the restrictions set forth in
sections 2, 3 and 4, below, as well as all other 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"). Subject to the terms
of section 3(d) hereof, the Participant shall have the right to receive
dividends on the Awarded Shares as and when paid.
2. Vesting - Restrictions and
Limitations – (a) Subject to the limitations and other terms and
conditions set forth in this Agreement and in the Plan, the Awarded Shares shall
vest, the Company shall remove all restrictions from such Awarded Shares and the
Participant shall obtain unrestricted ownership of the Awarded Shares in
accordance with the schedule set forth below:
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___ shares on the later
to occur of (i) [1 year
following grant], or, (ii) the date on which the Compensation
Committee of the Board (or such other committee designated to administer
the Plan (the "Committee")) makes the certification described in Section
2(b) hereof (the "First Vest")
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___ shares on the later
to occur of (i) [2 years
following grant], or (ii) the date on which the Committee makes the
certification described in Section 2(b) hereof (the "Second
Vest")
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___ shares on the later
to occur of (i) [3 years
following grant], or (ii) the date on which the Committee makes the
certification described in Section 2(b) hereof (the "Final
Vest")
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The period from the date of grant of
the Awarded Shares through the date immediately preceding the date on which such
Awarded Shares vest shall be hereinafter referred to as the "Restriction
Period."
(b) Notwithstanding
the provisions of section 2(a) hereof:
(i) The
First Vest shall be conditioned on, subject to and shall not occur until
certification by the Committee (by resolution or in such other manner as the
Committee deems appropriate) that the Corporate Performance Objective (as such
term is defined in the Company's Amended and Restated Executive Annual Incentive
Plan) or similar objective under the Company's then-existing annual incentive
plan, or, if there is no such Corporate Performance Objective or similar
objective so established, such other appropriate performance target as the
Committee may establish (such Corporate Performance Objective, similar objective
or other performance target being hereinafter referred to as the "Performance
Target"), for [year of
grant] has been achieved. If the Committee does not or cannot
certify that the Performance Target has been achieved by December 31, [following year], then the
Participant shall forfeit the right to the shares subject to the First Vest, and
such shares shall be cancelled.
(ii) The
Second Vest shall be conditioned on, subject to and shall not occur until
certification by the Committee (by resolution or in such other manner as the
Committee deems appropriate) that the Performance Target for [year following year of grant]
has been achieved. If the Compensation Committee does not or cannot
certify that the Performance Target has been achieved by December 31, [following year], then the
Participant shall forfeit the right to the shares subject to the Second Vest,
and such shares shall be cancelled.
(iii) The
Final Vest shall be conditioned on, subject to and shall not occur until
certification by the Committee (by resolution or in such other manner as the
Committee deems appropriate) that the Performance Target for [two years following year of
grant] has been achieved. If the Committee does not or cannot
certify that the Performance Target has been achieved by December 31, [following year], then the
Participant shall forfeit the right to the shares subject to the Final Vest, and
such shares shall be cancelled.
(c) Notwithstanding the provisions of
sections 2(a) and 2(b), 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, the
Awarded Shares shall vest upon a Change of Control (as defined in the Retention
Agreement as in effect on the date hereof), in lieu of the vesting schedule set
forth in this section 2. Notwithstanding the provisions of sections
2(a) and 2(b), 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)
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 (as defined in the Plan), the shares of Common Stock are 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 Restricted
Stock shall, to the maximum extent practicable, be made in the same
form.
3. Terms and Conditions
- The Awarded Shares shall be registered in the name of the
Participant effective on the date of grant. The Company will issue
the Awarded Shares either (i) in certificated form, subject to a restrictive
legend substantially in the form attached hereto as Exhibit "A" and stop
transfer instructions to its transfer agent, and will provide for retention of
custody of the Awarded Shares prior to vesting and/or (ii) in non-certificated
form, subject to restrictions and instructions of like effect. Prior
to vesting (and if the Awarded Shares have not theretofore been forfeited in
accordance herewith), the Participant shall have the right to enjoy all
shareholder rights (including without limitation the right to receive dividends
(subject to forfeiture as more fully set forth below) and to vote the Awarded
Shares at all meetings of the shareholders of the Company at which holders of
Common Stock have the right to vote), with the exception that:
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(a)
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The
Participant shall not be entitled to delivery of unrestricted shares until
vesting.
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(b)
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The
Participant may not sell, transfer, pledge, exchange, hypothecate, or
otherwise dispose of the Awarded Shares prior to
vesting.
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(c)
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In
addition to the provisions set forth in section 4 hereof, a breach by the
Participant of the terms and conditions set forth in this Agreement shall
result in the immediate forfeiture of all then unvested Awarded
Shares.
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(d)
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Notwithstanding
anything herein to the contrary, if all or a portion of the Awarded Shares
do not vest, whether upon the termination of the Participant's employment
with the Company or a subsidiary or affiliate of the Company (including
any successors to the Company), or otherwise (including without limitation
if the Company fails to meet one or more Performance Targets established
as described in section 2(b) hereof), all dividends paid to the
Participant on Awarded Shares which have not vested (and which shall not
thereafter vest in accordance with Section 4 hereof) shall be forfeited,
and shall be repaid to the Company within thirty (30) days after the date
on which Participant's obligation to repay such dividends
accrues. For purposes hereof, such obligation to repay such
dividends shall accrue (1) on such date as the Committee establishes that
a Performance Target has not been met, as to all dividends paid on Awarded
Shares which are forfeited due to failure to meet such Performance Target;
(2) on the date of termination of employment, as to all dividends paid on
Awarded Shares which are forfeited upon such termination of employment;
and (3) after termination of employment if, prior to vesting of all or any
portion of the Awarded Shares, the Participant breaches any provision
hereof, including without limitation the provisions of section 9 hereof,
in which event the Participant shall immediately forfeit all rights to the
then-unvested Awarded Shares and any dividends theretofore paid on such
then-unvested Awarded Shares.
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4. Vesting Conditions – Except
as otherwise set forth herein, the Participant must remain in the continuous
employment of the Company or a subsidiary or affiliate of the Company (including
any successors to the Company) from the effective date of this Agreement through
the relevant vesting date (or dates) set forth in (or determined in accordance
with) section 2, above, in order for the Awarded Shares to vest and in order to
retain the dividends paid prior to vesting with respect to such Awarded
Shares. Except as otherwise set forth herein or in the Plan in
connection with a Change of Control (as defined in a Retention Agreement, if
applicable, or in the Plan as in effect on the date hereof), in the event that
the Participant's employment with the Company (or a subsidiary, affiliate or
successor of the Company) terminates for any reason prior to vesting, his or her
rights hereunder will 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 Awarded Shares not
theretofore vested (including without limitation rights to dividends not
theretofore paid and rights to retain dividends on Awarded Shares which
have not theretofore vested, as more fully set forth in section 3(d)
hereof) under this Agreement shall be immediately
forfeited. Forfeited dividends shall be repaid to the Company
within thirty (30) days after the Participant's termination of
employment.
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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), (2) death or (3) retirement on or after age 65 not
meeting the condition set forth in section 4(c), below, a pro rata share
(calculated based upon the number of completed years of service during the
Restriction Period) of the then unvested portion of the Awarded Shares
shall vest (a) in the event of disability or death, on the date of
termination of employment or (b) in the event of retirement on or after
age 65 which does not meet the condition set forth in section 4(c), below,
on the vesting schedule and otherwise in accordance with the terms and
conditions (including without limitation satisfaction of the applicable
performance conditions) set forth in section 2 hereof, notwithstanding
that the Participant's employment will have previously
terminated. Notwithstanding the foregoing, if, after
termination of employment but prior to vesting of all or any portion of
the Awarded Shares, the Participant breaches any provision hereof,
including without limitation the provisions of section 9 hereof, the
Participant shall immediately forfeit all rights to the then-unvested
Awarded Shares and any dividends theretofore paid on such then-unvested
Awarded Shares. Forfeited dividends shall be repaid to the Company within
thirty (30) days after the date on which Participant's obligation to repay
such dividends accrues.
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(c)
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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), the then-unvested portion
of the Awarded Shares shall vest on the vesting schedule and otherwise in
accordance with the terms and conditions (including without limitation
satisfaction of the applicable performance conditions) set forth in
section 2 hereof, notwithstanding that the Participant's employment will
have previously terminated. Notwithstanding the foregoing, if,
after termination of employment but prior to vesting of all or a portion
of the Awarded Shares, the Participant breaches any provision hereof,
including without limitation the provisions of section 9 hereof, the
Participant shall immediately forfeit all rights to the then-unvested
Awarded Shares and any dividends theretofore paid on such then-unvested
Awarded Shares. Forfeited dividends shall be repaid to the
Company within thirty (30) days after the date on which Participant's
obligation to repay such dividends
accrues.
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(d)
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If
a Participant's employment is terminated prior to vesting of all or a
portion of the Awarded Shares 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 then-unvested Awarded Shares shall be forfeited or
whether the Participant shall be entitled to full vesting or pro rata
vesting as set forth above based upon completed years of service during
the Restriction Period, and any Awarded Shares which may vest shall do so
on the vesting schedule and otherwise in accordance with the terms and
conditions (including without limitation satisfaction of the applicable
performance conditions) set forth in section 2 hereof, notwithstanding
that the Participant's employment will have previously
terminated. Notwithstanding the foregoing, if, after
termination of employment but prior to vesting of all or a portion of the
Awarded Shares, the Participant breaches any provision hereof, including
without limitation the provisions of section 9 hereof, the Participant
shall immediately forfeit all rights to the then-unvested Awarded Shares
and any dividends theretofore paid on such then-unvested Awarded
Shares. Forfeited dividends shall be repaid to the Company
within thirty (30) days after the date on which Participant's obligation
to repay such dividends accrues.
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[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
(such Employment Letter, 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), then the Participant shall continue to
vest in the Awarded Shares on the schedule and otherwise on the terms and
conditions set forth in section 2 hereof until the date which is two years after
the date on which the Participant's employment is terminated. Awarded
Shares which are scheduled to vest after the date which is two years after the
date on which the Participant's employment is terminated in accordance herewith
shall be forfeited effective on the date on which the Participant's employment
is terminated.
5. Income Taxes - The
Participant shall notify the Company immediately of any election made with
respect to this Agreement under Section 83(b) of the Internal Revenue Code of
1986, as amended. Upon vesting and delivery of Awarded 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 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.
6. Nonassignability - The
Participant's rights and interest in the Awarded Shares may not be assigned,
pledged, or transferred prior to vesting except, in the event of death, to a
designated beneficiary or by will or by the laws of descent and
distribution.
7. 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]).
8. Successors and 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.
9. Protective Covenants
- In consideration of the Awarded Shares 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 theretofore unvested Awarded Shares and
dividends relating thereto 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. 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, provided that if the Participant is a party to a Retention
Agreement, the provisions of section 2(b) hereof shall supercede 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 capitalized terms used herein are used as defined in the
Plan. 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.
11. Interpretation - The
Committee has the sole and absolute right to interpret the provisions of this
Agreement.
12. 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 may 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
Participant shall consent to the nonexclusive personal jurisdiction of the
courts described in this section 12 for the purpose of all suits, actions, and
proceedings relating to the Agreement or the Plan. The Company and
the 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.
13. 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.
14. 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 number
of Awarded Shares 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.
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 hereto
have executed this Agreement as of the day and year first above
written.
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FPL
GROUP, INC.
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Name:
Title:
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Participant
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Exhibit
"A"
LEGEND
TO BE PLACED ON STOCK CERTIFICATE
The
shares represented by this certificate are subject to the provisions of the
Amended and Restated FPL Group Long-Term Incentive Plan (the "Plan") and a
Restricted Stock Award Agreement (the "Agreement") between the holder hereof and
FPL Group, Inc. and may not be sold or transferred except in accordance
therewith. Copies of the Plan and Agreement are kept on file by the
Vice President & Corporate Secretary of FPL Group,
Inc.
