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ANNUAL INCENTIVE PLAN
January 1, 2007
The Strategic Energy, L.L.C. (SE) Annual Incentive Plan (“Plan”) is designed to motivate and reward team
members to achieve specific key financial and business goals and to also reward individual performance. By
providing market-competitive target awards, the Plan supports the attraction and retention of talent critical to
achieving SE’s strategic business objectives.
Eligible participants include all non-commissioned employees as approved by the CEO & President (CEO) of
Target award levels are approved by the Compensation and Development Committee (“Committee”) of the
Board of Directors and set as a percentage of the participant’s base salary. Percentages will vary based on level
of responsibility, market data and internal comparisons.
Plan Year and Incentive Objectives
The “Plan Year” will be the fiscal year beginning on January 1 and ending on December 31. Within the first 90
days of the Plan Year, the Committee will approve specific annual objectives and performance targets that are
applicable to each participant. Annual objectives will include core earnings as a financial objective weighted at
40% and relating to the earnings for the participant’s primary business or as determined by the Committee; 40%
reflecting key SE business objectives; and 20% as an individual performance component. Each objective is
subject to an established threshold, target and maximum level. Each participant will be provided a copy of the
applicable objectives and targets within the first 90 days of the year (see Appendix I). Objectives, thresholds,
targets and maximums for each Plan Year will be fixed for the Plan Year and will be changed only upon the
approval of the Committee.
Payment of Awards
Approved awards will be payable to each participant as soon as practicable after the end of the Plan Year and
after the Committee has cert