XCEL ENERGY INC
EX-10.02 SEPARATION AGREEMENT
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<TYPE>EX-10.02
<SEQUENCE>5
<FILENAME>c78734exv10w02.htm
<DESCRIPTION>EX-10.02 SEPARATION AGREEMENT
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<P align="right"><FONT size="2">Exhibit&nbsp;10.02</FONT>

<P align="center"><FONT size="2">SEPARATION AGREEMENT
</FONT>
<P><FONT size="2">This Agreement is entered into this 26th day of October, 2001 by and between
Ben Fowke (&#147;Fowke&#148;) and Xcel Energy Inc. This Agreement shall bind any
successor to Xcel Energy Inc., its assets or its businesses (whether direct or
indirect, by purchase merger, consolidation or otherwise), in the same manner
and to the same extent that Xcel Energy Inc. would be obligated under this
Agreement if no succession had taken place.
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">1.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">It is agreed that, in the event that on or before October &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2001,
Fowke meets all eligibility requirements for benefits in the severance
plan or policy then in effect at Xcel Energy in which he is a
participant, Fowke will receive separation pay as follows:</FONT></TD>
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    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">A)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="91%"><FONT size="2">the sum of the product of (x)&nbsp;the targeted Annual
Incentive plus the Long Term Incentive Award and (y)&nbsp;a fraction,
the numerator of which is the number of days in such year
through the date of separation, and the denominator of which is
365.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">B)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="91%"><FONT size="2">an amount equal to 250% of the sum
of Fowke&#146;s a) base
salary in effect on the date of separation, b) the higher of the
targeted Annual Incentive for the year in which his separation
occurs, or the Annual Incentive (as defined as the highest
amount Fowke received as an annual cash incentive award in any
of the three calendar years prior to the date of separation),
and c) targeted Long Term Incentive for the year in which his
separation occurs, and d) Flexible Perquisite Allowance. For
purposes of the calculation, the targeted Annual Incentive shall
not be less than 40% of base salary and the targeted Long Term
Incentive shall not be less than 35% of base salary. This
payment shall be reduced by the amount of severance payable to
Fowke under the terms of the severance plan or policy in which
he is a participant.</FONT></TD>
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<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">C)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="91%"><FONT size="2">an amount equal to the present value of the
difference between a) the actuarially equivalent benefit that
would have been payable under the Xcel Energy defined benefit
pension plan in which Fowke is participating, had he continued
as an active participant for 30&nbsp;months following his date of
separation and b) Fowke&#146;s actual benefit paid or payable under
that plan at his date of separation. The actuarial assumptions
and factors for this calculation shall be the same as those in
effect in that same Xcel Energy defined benefit pension plan.</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">D)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="91%"><FONT size="2">an amount equal to the maximum company contributions
that would have been made to Fowke&#146;s account in the Xcel
Energy<BR>
401(k) plan had he continued as an active participant for 30
months following his date of separation.</FONT></TD>
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<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">2.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Additionally, for a period of 30&nbsp;months following the date of
separation, Fowke and his family shall be provided with medical,
dental, and life insurance benefits as if Fowke&#146;s employment had not
been terminated; provided, however, that if Fowke becomes reemployed
with another employer and is eligible to receive medical or other
welfare benefits under another employer-provided plan, the medical and
other welfare benefits described herein shall be secondary to those
provided under such plan.</FONT></TD>
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<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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    <TD width="1%" align="left" nowrap><FONT size="2">3.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Additionally, Fowke will be a) provided outplacement services by a
provider of his choosing at a cost not to exceed $30,000 and b)
reimbursed for financial planning service he obtains from a provider of
his choosing at a cost not to exceed 2% of Fowke&#146;s base salary at the
date of separation.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">4.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">In the event it is determined that any payment under this agreement
would be subject to the Excise Tax, (as defined as the excise tax
imposed by Section&nbsp;4999 of the Code, together with any interest or
penalties imposed with respect to such tax), then Fowke would be
entitled to receive an additional &#147;Gross-Up Payment&#148; under terms
consistent with the most current Xcel Energy Inc. executive severance
Plan that would be available to an officer of Xcel Energy Inc.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">5.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">No payment will be made under this Agreement until Fowke has signed
and delivered to the Chief Human Resources Officer, Xcel Energy, a
Waiver and Release in the form attached hereto as Exhibit&nbsp;A. If Fowke
has not signed and delivered the Waiver and Release by the 21st day
after the termination of his employment, no amount will be payable
under this Agreement.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">6.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">No payment will be due under this Agreement if Fowke voluntarily
terminates his employment or if his employment is terminated for cause
by Xcel Energy. &#147;For cause&#148; shall have occurred if Fowke is terminated
because of:</FONT></TD>
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<TR valign="top">
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">A)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="91%"><FONT size="2">the willful and continued failure of Fowke to perform
substantially his duties with Xcel Energy Inc. or one of its
affiliates (other than any such failure resulting from
incapacity due to physical or mental illness), after a written
demand for substantial performance is delivered to Fowke by an
elected officer of Xcel Energy Inc. which specifically
identifies the manner the elected officer believes Fowke has not
substantially performed his duties, or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">B)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="91%"><FONT size="2">the willful engaging by Fowke in illegal conduct or
gross misconduct which is materially and demonstrably injurious
to Xcel Energy, Inc.</FONT></TD>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this provision, no act or failure to act, on the part
of Fowke, shall be considered &#147;willful&#148; unless it is done, or omitted<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
be done, by Fowke in bad faith or without reasonable belief that
the action or omission was in the best interest of Xcel Energy Inc.
</FONT>

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    <TD width="40%">&nbsp;</TD>
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    <TD valign="top"><FONT size="2">Xcel Energy Inc.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Ben Fowke</FONT></TD>
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    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
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<TR valign="bottom">
    <TD valign="top"><FONT size="2">By: /s/ Paul Bonavia<BR>
Its: President, Energy Markets</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
/s/ Ben Fowke</FONT></TD>
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<P align="left"><FONT size="2"><B>EXHIBIT A</B>
</FONT>

<P align="center"><FONT size="2">WAIVER AND RELEASE
</FONT>
<P><FONT size="2">Xcel Energy Inc. (the &#147;Company&#148;) and Ben Fowke (&#147;Employee&#148;) hereby
enter into the following Waiver and Release:
</FONT>
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
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    <TD width="1%" align="left" nowrap><FONT size="2">1.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">In return for the consideration described in
Paragraph&nbsp;1 of the Separation Agreement between Employee and the
Company, a payment to which Employee is not otherwise entitled,
Employee, individually and on behalf of his successors, heirs
and assigns, hereby irrevocably and unconditionally RELEASES,
WAIVES, and DISCHARGES the Company, its predecessors, successors
and any affiliated and subsidiary companies, corporations,
partnerships or other business enterprises, and their respective
officers, directors, stockholders, owners, supervisors,
managers, partners, employees and agents (&#147;Releasees&#148;), from any
and all claims, demands, actions and liabilities whatsoever,
whether known or unknown, suspected or unsuspected, that
Employee may have or claim to have in any way relating to or
arising out of any event or act of omission or commission
occurring on or before the date of Employee&#146;s execution of this
Waiver and Release, including but not limited to:</FONT></TD>
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<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Claims arising under federal, state, or local laws
prohibiting age, sex, race, national origin, handicap, religion,
retaliation, or any other form of discrimination, including but
not limited to claims under the Age Discrimination in Employment
Act, as amended, 29. U.S.C. 621 et seq.; Title VII of the 1964
Civil Rights Act, as amended 42 U.S.C. 2000e et seq.; the 1866 Civil
Rights Act, 42 U.S.C. 1981; the Americans with Disabilities Act;
the Rehabilitation Act of 1973; Executive Order 11246, Minnesota
Human Rights Act, and the Colorado Anti-Discrimination Act of
1957, as amended C.R.S. 24-34-301 et seq.;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Claims arising under the Fair Labor Standards Act or
the National Labor Relations Act;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Intentional infliction of emotional distress
(outrageous conduct) and other tort claims;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Worker Adjustment and Retraining Notification Act 29
U.S.C. 2101 et seq.;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Breach of contract claims;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Promissory estoppel claims;</FONT></TD>
</TR>
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    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Retaliatory discharge claims;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Wrongful discharge claims; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Other legal and equitable claims regarding Employee&#146;s
employment with the Company or the termination of said
employment.</FONT></TD>
</TR>
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<P><FONT size="2">The only exceptions to this paragraph and to paragraph 2 are claims for
workers&#146; compensation and unemployment compensation claims, if any, to the
extent required by law.
</FONT>
<P>
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<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">2.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Employee hereby represents that Employee has not
filed a complaint or charge with any local, state or federal
agency or court against any Releasee or, in the event that the
Employee has filed such a complaint or charge, Employee hereby
acknowledgers that Employee may not pursue remedies or sanctions
on Employee&#146;s behalf. Employee agrees that, if any such agency
or court assumes jurisdiction of any complaint or charge on
behalf of Employee against any Releasee, Employee will instruct
such agency or court to pursue no remedies or sanctions on
Employee&#146;s behalf.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">3.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">In the event that Employee breaches this Waiver and
Release, Employee agrees to pay the Company&#146;s expenses cause by
such breach, including the Company&#146;s attorneys&#146; fees and costs.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">4.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Employee acknowledges that Employee has been advised
in writing by the Company that Employee should consult with an
attorney prior to executing this Waiver and Release. Employee
further acknowledges that Employee has been given a period of
twenty-one (21)&nbsp;days within which to consider this Waiver and
Release.</FONT></TD>
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