Exhibit 10.aaaa


 


STOCK AWARD AGREEMENT


 


 


THIS STOCK
AWARD AGREEMENT (“Agreement”) is made and entered into as of the       
day of             ,
      by and between Cinergy Corp., a Delaware
corporation (the “Company”) and                            
(the “Director”).


 


                WHEREAS,
the Company has adopted the Cinergy Corp. 1996 Long-Term Incentive Compensation
Plan, as amended from time to time (the “Plan”), pursuant to which the Company’s
Board of Directors (the “Board”) has granted to the Director the right to
receive shares of Common Stock on the terms set forth in this Agreement; and


 


WHEREAS, the parties desire
to enter into this Agreement to set forth their understanding with respect to
the Common Stock described in this Agreement.


 


                NOW,
THEREFORE, in consideration of the recitals and the mutual agreements contained
in this Agreement, the parties agree as follows:


 


1. 
           Grant of Shares. The Company hereby grants to the
Director, effective as of           ,
        (the “Date of Grant”), in
consideration for service on the Board in          ,
a number (rounded up to the nearest whole number) of shares of Common Stock
(the “Shares”) equal to (i) $          
divided by (ii) the Fair Market Value of a share of Common Stock on the Date of
Grant. The grant of Shares shall be subject to and upon the terms, conditions
and restrictions set forth in this Agreement and the Plan.  The Shares shall be fully paid and
nonassessable.  Unless deferred as
described in Section 2 below, the Shares shall be delivered to the Director as
soon as administratively practicable following the Date of Grant.


2.             Deferral
Election.  Prior to the date on which
the Board has approved the grant of shares and contingent on such grant being
approved, the Director has been given the opportunity to elect to voluntarily
defer the receipt of all of the Shares pursuant to the terms of the Deferred
Compensation Agreement attached hereto as Attachment A.  In the event such a deferral election is
made, dividend equivalents shall be paid pursuant to the Plan in accordance
with the terms of the Deferred Compensation Agreement.


 


3.             Miscellaneous.  The provisions of the Plan
are incorporated into this Agreement by reference. Except as otherwise
expressly set forth in this Agreement, this Agreement shall be construed in
accordance with the provisions of the Plan and such regulations as may from
time to time be adopted by the Board.  In
the event of any conflict between the provisions of the Plan and the provisions
of this Agreement, the terms, conditions and provisions of the Plan shall
control, and this Agreement shall be deemed to be modified accordingly. Any
capitalized terms not otherwise defined in this Agreement shall have the
definitions set forth in the Plan.  The
Company shall make


 


 


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reasonable efforts to comply with all
applicable federal and state securities laws; provided, however,
notwithstanding any other provision of this Agreement, the Company shall not be
obligated to deliver any Common Stock pursuant to this Agreement if the
delivery thereof would result in a violation of any such law, in which case the
Company shall pay to the Director a lump sum cash payment equal to the Fair
Market Value of the shares of Common Stock that are not so delivered, which
payment shall discharge all obligations of the Company to the Director under
this Agreement.  This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.


 


                IN
WITNESS WHEREOF, this Agreement has been executed and delivered by the parties
as of the date first written above.


 


	
  DIRECTOR

  	
  CINERGY CORP.

  
	
   

  	
   

  
	
  Signature:
  

  	
   

  	
   

  	
  By:
  

  	
   

  
					



 


 


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TEMPLATE — ATTACHMENT A


 


DEFERRED COMPENSATION AGREEMENT


 


THIS DEFERRED COMPENSATION AGREEMENT (“Agreement”) is made
and entered into as of the          
day of                  ,
           by and between
Cinergy Corp., a Delaware corporation (the “Company”) and                          
(the “Director”).


                WHEREAS, the Company and the
Director wish to provide for the deferral of certain shares of the Company’s
Common Stock that may be awarded to the Director by the Company (the “Award”)
in consideration for the Director’s service as a member of the Company’s Board
of Directors (“Board”) in         ,
which deferral election shall be contingent on the approval of the Award by the
Board.


                NOW THEREFORE, in consideration
of the premises and other good and valuable consideration, receipt of which is
hereby acknowledged, the Company and the Director hereby agree as follows:


1.             Account.  The Company shall establish a bookkeeping
account for the benefit of the Director (the “Account”).  The balance in the Account shall reflect the
shares of Common Stock credited by the Company under Section 2 hereof, and
adjustments thereto for dividend equivalents in accordance with Section 3
hereof.


2.             Credit
to Account.  Effective as of               ,
        , the Company shall credit to
the Account a number (rounded up to the nearest whole number) of shares of
Common Stock equal to (i) $            
divided by (ii) the Fair Market Value of a share of Common Stock on                ,
      .


3.             Adjustment
to Account.  The amount credited to
the Account, plus dividend equivalents thereon, shall be deemed to be invested
at all times in shares of Common Stock, in accordance with procedures
established from time to time by the Board or its delegate.  The Director acknowledges and agrees that the
Company is not and shall not be required to make any investment in Common Stock
in connection with this Agreement.  The
Board or its delegate may make or provide for such adjustments in the number of
shares of Common Stock credited to the Account as the Board or its delegate, in
its sole discretion exercised in good faith, may determine is equitably
required in order to prevent dilution or enlargement of the Director’s rights
that otherwise would result from (i) any stock dividend, stock split,
combination of shares, recapitalization, or other change in the capital
structure of the Company, (ii) any merger, consolidation, spin-off, split-off,
spin-out, split-up, reorganization, partial or complete liquidation, or other
distribution of assets or issuance of rights or warrants to purchase
securities, or (iii) any other corporate transaction or event having an effect
similar to any of the foregoing.  In the
event of any such transaction or event, the Board or its delegate, in its sole
discretion exercised in good faith, may provide, in substitution for


 


 


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the Common
Stock credited to the Account, such alternative consideration as it may
determine to be equitable in the circumstances.


4.             Payments
to Director. The Director will be entitled to receive the shares of Common
Stock then-credited to his Account as soon as administratively practicable
following the date on which the Director ceases to be a director of the
Company.  The lump sum payment shall be
made in the form of shares of Common Stock, and cash in lieu of any fractional
share.  The payment to the Director of a
single lump sum payment shall discharge all obligations of the Company to the
Director under this Agreement. 
Notwithstanding the above, the date on which the Director ceases to be a
director of the Company shall be deemed to have not occurred for purposes of
this Agreement unless such cessation constitutes a “separation from service”
within the meaning of Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), and any regulations promulgated thereunder.


                5.             Death.  If the Director dies before the balance of
his Account has been paid to him, the balance of the Account shall be paid to
the Director’s beneficiary in a single lump sum payment as soon as
administratively practicable following the date of the Director’s death. The
lump sum payment shall be made in the form of shares of Common Stock, and cash
in lieu of any fractional share.  The
Director’s “beneficiary” is the person or persons, including one or more
trusts, designated by the Director to receive payment of the Account in the
event of the death of the Director on a form provided by the Company.  If the Director fails to designate a beneficiary
or designates a beneficiary who fails to survive him, the Director’s
beneficiary shall be his estate.


 


6.             Administration. 
The Company, through the Board or its delegate, shall be responsible
for the general administration of the Agreement and for carrying out the
provisions hereof.  The Board or its
delegate shall have all such powers as may be necessary to carry out the
provisions of the Agreement, including the power to (i) resolve all questions
pertaining to claims for benefits and procedures for claim review, (ii) resolve
all other questions arising under the Agreement, including any factual
questions and questions of construction, and (iii) take such further
action as the Company shall deem advisable in the administration of the
Agreement.  The actions taken and the
decisions made by the Board or its delegate hereunder shall be final and
binding upon all interested parties.  Any
capitalized terms not otherwise defined in this Agreement shall have the
definitions set forth in the Award.


 


7.             Account Payable. 
All payments under this Agreement shall be paid by the Company out of
its general assets.  The Director’s
rights to receive payments under this Agreement shall be no greater than that
of an unsecured general creditor of the Company.


 


8.             Nonassignment of Benefits.  No amount payable under this Agreement may be
assigned, transferred, encumbered or subject to any legal process for the
payment of any claim against the Director or his or her beneficiary.


 


 


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9.             Amendment and Termination.   This
Agreement may be amended from time to time by a writing signed by both parties
hereto which makes specific reference to this Agreement.


 


10.           Governing Law.  
This Agreement and the Director’s rights under it shall be construed
and determined in accordance with the laws of the state of Delaware.


 


11.           Agreement Binding on Successors.  This Agreement shall be binding upon the
successors and assigns of the parties hereto.


 


12.           No Funding Required.  The Director acknowledges that the Company
shall have no obligation to set aside any assets to fund its obligations under
this Agreement.


 


13.           Compliance with Law.  The Company shall make
reasonable efforts to comply with all applicable federal and state securities
laws; provided, however, notwithstanding any other provision of
this Agreement, the Company shall not be obligated to issue any Common Stock
pursuant to this Agreement if the issuance thereof would result in a violation
of any such law, in which case the Company shall satisfy its obligations
hereunder in cash rather than shares of Common Stock.  This Agreement shall be construed,
administered and governed in a manner that is consistent with, and that
satisfies the requirements of, Section 409A of the Code and any regulations
promulgated thereunder, so that taxation to the Director is deferred under this
Agreement until distribution as provided hereunder.


 


14.           Tax Withholding. 
To the extent required by law, the Company will withhold all applicable
income and other taxes from amounts otherwise payable under this Agreement.


 


                IN
WITNESS WHEREOF, this Agreement has been executed and delivered by the parties
as of the date first written above.


 


	
  DIRECTOR

  	
  CINERGY CORP.

  
	
   

  	
   

  
	
  Signature:
  

  	
   

  	
   

  	
  By:
  

  	
   

  
	
   

  	
   

  
					



 


 


 


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