Document:

Exhibit 10.1

 

PHANTOM
STOCK AWARD AGREEMENT

 

This
Phantom Stock  Award
Agreement (the “Agreement”) has been made as of                            ,  (the “Date of Grant”) between Duke Energy
Corporation, a Delaware corporation, with its principal offices in Charlotte,
North Carolina (the “Corporation”), and                               
(the “Grantee”).

 

RECITALS

 

Under
the Duke Energy Corporation 2006 Long-Term Incentive Plan, as it may, from time
to time, be further amended (the “Plan”), the Compensation Committee of the
Board of Directors of the Corporation (the “Committee”), or its delegatee, has
determined the form of this Agreement and selected the Grantee, as an Employee,
to receive the award evidenced by this Agreement (the “Award”) and the Phantom
Stock units and tandem Dividend Equivalents that are subject hereto.  The applicable provisions of the Plan are
incorporated in this Agreement by reference, including the definitions of terms
contained in the Plan (unless such terms are otherwise defined herein).

 

AWARD

 

In accordance with the Plan,
the Corporation has made this Award, effective as of the Date of Grant and upon
the following terms and conditions:

 

Section 1.              Number and Nature of
Phantom Stock Units and Tandem Dividend Equivalents.  The
number of Phantom Stock units and the number of tandem Dividend Equivalents
subject to this Award are each                                                                     .  Each Phantom Stock unit, upon becoming vested
before its expiration, represents a right to receive payment in the form of one
(1) share of Common Stock.  Each
tandem Dividend Equivalent represents a right to receive cash payments
equivalent to the amount of cash dividends declared and paid on one (1) share
of Common Stock after the Date of Grant and before the Dividend Equivalent
expires.  Phantom Stock units and
Dividend Equivalents are used solely as units of measurement, and are not
shares of Common Stock and the Grantee is not, and has no rights as, a
shareholder of the Corporation by virtue of this Award.

 

Section 2.              Vesting of Phantom Stock Units.  The
specified percentage of the Phantom Stock units subject to this Award, and not
previously forfeited, shall vest, with such percentage considered satisfied to
the extent such Phantom Stock units have previously vested, as follows:

 

 

(a)           Upon Grantee
remaining continuously employed by the Corporation, including Subsidiaries,
through the specified anniversary of the Date of Grant,

 

	
  Vesting Percentage

  	
   

  	
  Anniversary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  33-1/3%

  	
   

  	
  1st

  	
   

  
	
  66-2/3%

  	
   

  	
  2nd

  	
   

  
	
  100%

  	
   

  	
  3rd

  	
   

  

 

For
purposes of vesting under this Section 2(a), if such employment terminates
at a time when Grantee has attained age 55 and has at least five years of
vesting service under the Duke Energy Retirement Cash Balance Plan or Cinergy
Corp. Non-Union Employees’ Pension Plan, or under another retirement plan of
the Corporation or Subsidiary which plan the Committee, or the delegatee, in
its sole discretion, determines to be the functional equivalent of the Duke
Energy Retirement Cash Balance Plan or Cinergy Corp. Non-Union Employees’
Pension Plan, Grantee shall be considered to have “retired” and such employment
shall be considered to continue, with continued vesting under this Section 2(a),
unless the Committee or its delegatee, in its sole discretion, determines that
Grantee is in violation of any obligation identified in Section 3, in
which case any such Phantom Stock units not previously vested, or vested by
application of the following sentence shall be forfeited, or unless the Grantee
dies, in which case the Phantom Stock units subject to this Award shall vest in
accordance with the following sentences. 
If such employment terminates (i) as the result of Grantee’s death
or (ii) as the result of Grantee’s permanent and total disability within
the meaning of Code Section 22(e)(3), all Phantom Stock units subject to
this Award, which units have not previously been forfeited or vested,
immediately shall become fully vested. 
If such employment terminates (i) as the result of termination of
such employment by the Corporation, or employing Subsidiary, other than for
cause, as determined by the Committee or its delegatee or (ii) as the
direct and sole result, as determined by the Committee or its delegatee, in its
sole discretion, of the divestiture of assets, a business or a company, by the
Corporation or a Subsidiary, the Phantom Stock units subject to this Award
shall vest at such vesting percentage determined by the Committee or its
delegatee, in its sole discretion, by prorating from the above schedule to
reflect only that portion of the period beginning on the Date of Grant and
ending with the third (3rd) anniversary of the Date of Grant during
which such employment continued while Grantee was entitled to payment of
salary, and any such Phantom Stock units not then or previously vested shall be
forfeited.

 

In
the event that at a time when vesting would otherwise occur under this Section 2(a),
Grantee is on an employer-approved, personal leave of absence, then, unless
prohibited by law, vesting shall be postponed and shall not occur unless and
until Grantee returns to active service in accordance with the terms of the 

 

 

approved
personal leave of absence and before January 15 of the calendar year
immediately following the calendar year in which the leave commenced.  In the event Grantee does not return to
active service from such leave of absence prior to January 15 of the
calendar year immediately following the calendar year in which the leave
commenced, any Phantom Stock units covered by this Award that were not vested
as of the commencement of such leave shall be immediately forfeited (as if
Grantee terminated employment for purposes of Section 4 hereof).

 

(b)           100%, if, following the occurrence of
a Change in Control and before the second anniversary of such occurrence, such
employment is terminated involuntarily, and not for cause, by the Corporation,
or employing Subsidiary, as determined by the Committee or its delegatee in its
sole discretion, other than under circumstances described in the second
sentence of Section 2(a).

 

Section 3.              Violation of
Grantee Obligation.  In
consideration of the continued vesting opportunity provided under Section 2
following the termination of Grantee’s continuous employment by the
Corporation, including Subsidiaries, if Grantee is considered “retired”,
Grantee agrees that during the period beginning with such termination of
employment and ending with the third anniversary of the Date of Grant (“Restricted
Period”), Grantee shall not (i) without the prior written consent of the
Corporation, or its delegatee, become employed by, serve as a principal,
partner, or member of the board of directors of, or in any similar capacity
with, or otherwise provide service to, a competitor, to the detriment of the
Corporation or any Subsidiary, or (ii) violate any of Grantee’s other
noncompetition obligations, or any of Grantee’s nonsolicitation or
nondisclosure obligations, to the Corporation or any Subsidiary.  The noncompetition obligations of clause (i) of
the preceding sentence shall be limited in scope and shall be effective only to
competition with the Corporation or any Subsidiary in the businesses of:  production, transmission, distribution, or
retail or wholesale marketing or selling of electricity; resale or arranging
for the purchase or for the resale, brokering, marketing, or trading of
electricity or derivatives thereof; energy management and the provision of
energy solutions; development and management of fiber optic communications
systems; development and operation of power generation facilities, and sales
and marketing of electric power, domestically and abroad; and any other
business in which the Corporation, including Subsidiaries, is engaged at the
termination of Grantee’s continuous employment by the Corporation, including
Subsidiaries; and within the following geographical areas (i) any country
in the world where the Corporation, including Subsidiaries, has at least US$25
million in capital deployed as of termination of Grantee’s continuous
employment by Corporation, including Subsidiaries; (ii) the continent of
North America; (iii) the United States of America and Canada; (iv) the
United States of America; (v) the states of North Carolina, South
Carolina, Virginia, Georgia, Florida, Texas, California, Massachusetts,
Illinois, Michigan, New York, Colorado, Oklahoma and Louisiana; 

 

 

(vi) the
states of North Carolina, South Carolina, Texas, Colorado, Ohio, Kentucky, and
Indiana; and (vii) any state or states with respect to which was conducted
a business of the Corporation, including Subsidiaries, which business
constituted a substantial portion of Grantee’s employment.  The Corporation and Grantee intend the above
restrictions on competition in geographical areas to be entirely severable and
independent, and any invalidity or enforceability of this provision with
respect to any one or more of such restrictions, including areas, shall not
render this provision unenforceable as applied to any one or more of the other
restrictions, including areas.  If any part
of this provision is held to be unenforceable because of the duration, scope or
area covered, the Corporation and Grantee agree to modify such part, or that
the court making such holding shall have the power to modify such part, to
reduce its duration, scope or area, including deletion of specific words and
phrases, i.e., “blue penciling”, and in its modified, reduced or blue pencil
form, such part shall become enforceable and shall be enforced.  Nothing in Section 3 shall be construed
to prohibit Grantee from being retained during the Restricted Period in a
capacity as an attorney licensed to practice law, or to restrict Grantee from
providing advice and counsel in such capacity, in any jurisdiction where such
prohibition or restriction is contrary to law.

 

Section 4.              Forfeiture/Expiration.  Any Phantom Stock unit subject to this Award
shall be forfeited upon the termination of Grantee’s continuous employment by
the Corporation, including Subsidiaries, from the Date of Grant, except to the
extent otherwise provided in Section 2, and, if not previously vested and
paid, or deferred, or forfeited, shall expire immediately before the tenth
anniversary of the Date of Grant.  Any
Dividend Equivalent subject to this Award shall expire at the time the unit of
Phantom Stock with respect to which the Dividend Equivalent is in tandem (i) is
vested and paid, or deferred, (ii) is forfeited, or (iii) expires.

 

Section 5.              Dividend Equivalent Payments.  Payments
with respect to any Dividend Equivalent subject to this Award shall be paid in
cash to the Grantee within 60 days after the time cash dividends are declared
and paid with respect to the Common Stock on or after the Date of Grant and
before the Dividend Equivalent expires, but in no event later than the calendar
year in which the dividends are declared and paid.  However, should the timing of a particular
payment under Section 6 to the Grantee in shares of Common Stock in
conjunction with the timing of a particular cash dividend declared and paid on
Common Stock be such that the Grantee receives such shares without the right to
receive such dividend and the Grantee would not otherwise be entitled to
payment under the expiring Dividend Equivalent with respect to such dividend,
the Grantee, nevertheless, shall be entitled to such payment.  Dividend Equivalent payments shall be subject
to withholding for taxes.

 

Section 6.              Payment
of Phantom Stock Units.  Payment of
Phantom Stock units subject to this Award shall be made to the Grantee as soon
as 

 

 

practicable
following the time such units become vested in accordance with Section 2
prior to their expiration but in no event later than 60 days following such
vesting, except to the extent deferred by Grantee in accordance with such
procedure as the Committee, or its delegatee, may prescribe.  Payment (or deferrals, as applicable) shall
be subject to withholding for taxes. 
Payment shall be in the form of one (1) share of Common Stock for
each full vested unit of Phantom Stock and any fractional vested unit of
Phantom Stock shall be made in a cash amount equal in value to the shares of
Common Stock that would otherwise be paid, valued at Fair Market Value on the
date the respective Phantom Stock units became vested, or if later,
payable.  Notwithstanding the foregoing,
the number of shares of Common Stock that would otherwise be paid or deferred
(valued at Fair Market Value on the date the respective unit of Phantom Stock
became vested, or if later, payable) shall be reduced by the Committee, or its
delegatee, in its sole discretion, to fully satisfy tax withholding
requirements.  In the event that payment,
after any such reduction in the number of shares of Common Stock to satisfy
withholding for tax requirements, would be less than ten (10) shares of
Common Stock, then, if so determined by the Committee, or its delegatee, in its
sole discretion, payment, instead of being made in shares of Common Stock,
shall be made in a cash amount equal in value to the shares of Common Stock
that would otherwise be paid, valued at Fair Market Value on the date the
respective Phantom Stock units became vested, or if later, payable.

 

                Section 7.              No Employment
Rights.  Nothing in this
Agreement or in the Plan shall confer upon the Grantee the right to continued
employment by the Corporation or any Subsidiary, or affect the right of the
Corporation or any Subsidiary to terminate the employment or service of the
Grantee at any time for any reason.

 

                Section 8.              Nonalienation.  The
Phantom Stock units and Dividend Equivalents subject to this Award are not
assignable or transferable by the Grantee. 
Upon any attempt to transfer, assign, pledge, hypothecate, sell or
otherwise dispose of any such Phantom Stock unit or Dividend Equivalent, or of
any right or privilege conferred hereby, or upon the levy of any attachment or
similar process upon such Phantom Stock unit or Dividend Equivalent, or upon
such right or privilege, such Phantom Stock unit or Dividend Equivalent or
right or privilege, shall immediately become null and void.

 

                Section 9.              Determinations.  Determinations
by the Committee, or its delegatee, shall be final and conclusive with respect
to the interpretation of the Plan and this Agreement.

 

                Section 10.            Governing
Law.  The validity and construction of this Agreement
shall be governed by the laws of the state of Delaware applicable to
transactions taking place entirely within that state.

 

 

Section 11.            Conflicts
with Plan, Correction of Errors, and Grantee’s Consent.  In
the event that any provision of this Agreement conflicts in any way with a
provision of the Plan, such Plan provision shall be controlling and the
applicable provision of this Agreement shall be without force and effect to the
extent necessary to cause such Plan provision to be controlling.  In the event that, due to administrative
error, this Agreement does not accurately reflect a Phantom Stock Award
properly granted to Grantee pursuant to the Plan, the Corporation, acting
through its Executive Compensation and Benefits Department, reserves the right
to cancel any erroneous document and, if appropriate, to replace the cancelled
document with a corrected document.  It
is the intention of the Corporation and the Grantee that this Award not result
in unfavorable tax consequences to Grantee under Code Section 409A.  Accordingly, Grantee consents to such
amendment of this Agreement as the Corporation may reasonably make in
furtherance of such intention, and the Corporation shall promptly provide, or
make available to, Grantee a copy of any such amendment.

 

Section 12.            Compliance
with Law.  The Corporation shall make reasonable
efforts to comply with all applicable federal and state securities laws
applicable to the Plan and this Award; provided, however, notwithstanding any
other provision of this Award, the Corporation shall not be obligated to
deliver any shares of Common Stock pursuant to this Award if the delivery
thereof would result in a violation of any such law.

 

Notwithstanding
the foregoing, this Award is subject to cancellation by the Corporation in its
sole discretion unless the Grantee, by not later than                   
                  ,
has signed a duplicate of this Agreement, in the space provided below, and
returned the signed duplicate to the Executive Compensation and Benefits
Department - Phantom Stock [(STO6E)], Duke Energy Corporation, P. O. Box
1007, Charlotte, NC 28201-1007, which, if, and to the extent, permitted by the
Executive Compensation and Benefits Department, may be accomplished by
electronic means.

 

IN
WITNESS WHEREOF, the Corporation has caused this Agreement to be executed and
granted in Charlotte, North Carolina, to be effective as of the Date of Grant.

 

 

	
  ATTEST:

  	
  DUKE
  ENERGY CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Corporate
  Secretary

  	
   

  	
  Its:

  	
  Chief
  Executive Officer

  

 

 

Acceptance of Phantom Stock Award

 

IN
WITNESS OF Grantee’s acceptance of this Award and Grantee’s agreement to be
bound by the provisions of this Agreement and the Plan, Grantee has signed this
Agreement this            day
of                                       ,
            .

 

 

	
   

  	
   

  
	
   

  	
  Grantee’s Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (print
  name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (address)Exhibit 10.2

 

PERFORMANCE
AWARD AGREEMENT

 

This Performance
Award Agreement (the “Agreement”) has been made as of                                 
(the “Date of Grant”) between Duke Energy Corporation,
a Delaware corporation, with its principal offices in Charlotte, North Carolina
(the “Corporation”), and                                 
(the “Grantee”).

 

RECITALS

 

Under the Duke Energy
Corporation 2006 Long-Term Incentive Plan, as it may, from time to time, be
further amended (the “Plan”), the Compensation Committee of the Board of
Directors of the Corporation (the “Committee”), or its delegatee, has
determined the form of this Agreement and selected the Grantee, as an Employee,
to receive the award evidenced by this Agreement (the “Award”) and the Performance
Shares and tandem Dividend Equivalents that are subject hereto.  The applicable provisions of the Plan are
incorporated in this Agreement by reference, including the definitions of terms
contained in the Plan (unless such terms are otherwise defined herein).

 

AWARD

 

In accordance with the Plan, the Corporation has
made this Award, effective as of the Date of Grant and upon the following terms
and conditions:

 

Section 1.              Number
and Nature of Performance Shares and Tandem Dividend Equivalents.  At
maximum performance, the number of Performance Shares and the number of tandem
Dividend Equivalents subject to this Award are each                                                             ;
at target performance, the number of Performance Shares and the number of  tandem Dividend Equivalents subject to this
award are equal to sixty-six and two-thirds percent (66 2/3%) of the number of
Performance Shares and tandem Dividend Equivalents at maximum performance,
respectively.  The number of such
Performance Shares that may become vested upon determination of achievement of
each Performance Goal at target, as provided in Section 2(a), is sixty-six
and two-thirds percent (66.66%) of the number that becomes vested at maximum
performance.  Each Performance Share,
upon becoming vested before its expiration, represents a right to receive
payment in the form of one (1) share of Common Stock.  Each tandem Dividend Equivalent, after its
tandem Performance Share vests, represents a right to receive a cash payment
equivalent in amount to the aggregate cash dividends declared and paid on one (1) share
of Common Stock for the period beginning on the Date of Grant and ending on the
date the vested, tandem Performance Share is paid or deferred.  Performance Shares and Dividend Equivalents
are used solely as units of 

 

 

measurement,
and are not shares of Common Stock and the Grantee is not, and has no rights
as, a shareholder of the Corporation by virtue of this Award.

 

Section 2.              Vesting of Performance Shares.

 

(a)  Performance Goals

 

(i)            The following
Performance Goal shall apply with respect to one-half of the Performance Shares
and Dividend Equivalents covered by this Agreement.  Provided Grantee’s continuous employment by
the Corporation, including Subsidiaries, has not terminated, or as otherwise
provided in Sections 2(b) or 2(c), one-half of the Performance Shares
subject to this Award shall become vested upon the written determination by the
Committee, or its delegatee, in its sole discretion, of the extent to which the
Corporation achieves the “TSR Performance Goal,” which is the Corporation’s
Total Shareholder Return (“TSR”) percentile ranking among the companies that
are in the Philadelphia Utility Index as of the end of the Performance Period,
with higher percentile ranking for more positive/less negative TSR, for the
period beginning January 1, 2008 and ending December 31, 2010 (“Performance
Period”), at, or above, the 25th percentile, in accordance with the
applicable vesting percentage specified for such percentile ranking in the
following schedule:

 

	
  Percentile

  Ranking

  	
   

  	
  Vesting

  Percentage

  (Applicable to

  Target # of

  Shares)

  	
   

  	
  Vesting

  Percentage

  (Applicable to

  Maximum # of

  Shares)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lower than 25th

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  
	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  25th

  	
   

  	
  50

  	
  %

  	
  33.33

  	
  %

  
	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  50th (target 

  performance)

  	
   

  	
  100

  	
  %

  	
  66.66

  	
  %

  
	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  75th or higher

  	
   

  	
  150

  	
  %

  	
  100

  	
  %

  

*When such determination is of a percentile ranking
between those specified, the Committee, or its delegatee, in its sole
discretion, shall interpolate to determine the applicable vesting percentage.

 

and
such Performance Shares that do not so become vested shall be forfeited.  For purposes of this Agreement, TSR means the
change in fair market value over a specified period of time, expressed as a
percentage, of an initial investment in specified common stock, with dividends 

 

 

reinvested,
all as determined utilizing such methodology as the Committee, or its
delegatee, shall approve, provided, however, that the Committee, or its
delegatee, shall have the discretion to make appropriate and equitable
adjustments to the TSR of any company (including the Corporation) whose shares
trade ex-dividend as of December 31, 2010, provided, however, that no such
adjustment shall be permitted if it would result in the loss of the otherwise
available exemption of the Award under Section 162(m) of the
Code.  In the event that a company
becomes a member of the Philadelphia Utility Index following January 1,
2008, such company shall not be taken into account for purposes of this
Agreement.

 

(ii)           The following Performance
Goal shall apply with respect to one-half of the Performance Shares and
Dividend Equivalents covered by this Agreement. 
Provided Grantee’s continuous employment by the Corporation, including
Subsidiaries, has not terminated, or as otherwise provided in Sections 2(b) or
2(c), one-half of the Performance Shares subject to this Award shall become
vested upon the written determination by the Committee, or its delegatee, in
its sole discretion, of the extent to which the Corporation achieves the “CAGR
Performance Goal,” which is based on the Corporation’s compounded annual growth
rate (“CAGR”) with respect to its ongoing earnings per share (“EPS”), as
calculated in accordance with Exhibit A, for the Performance Period
at, or above, 5%, in accordance with the applicable vesting percentage
specified for CAGR in the following schedule:

 

	
  CAGR

  	
   

  	
  Vesting

  Percentage

  (Applicable to

  Target # of Shares)

  	
   

  	
  Vesting

  Percentage

  (Applicable to

  Maximum # of

  Shares)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lower than 5%

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  
	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  5%

  	
   

  	
  50

  	
  %

  	
  33.33

  	
  %

  
	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  6% (target performance)

  	
   

  	
  100

  	
  %

  	
  66.66

  	
  %

  
	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  7% or higher

  	
   

  	
  150

  	
  %

  	
  100

  	
  %

  

 

*When such determination is at a level between those
specified, the Committee, or its delegatee, in its sole discretion, shall
interpolate to determine the applicable vesting percentage.

 

and
such Performance Shares that do not so become vested shall be forfeited.

 

 

(b) In
the event that, prior to the date that the determination of the achievement of
each Performance Goal is made, the Grantee’s continuous employment by the
Corporation, including Subsidiaries, terminates, the Performance Shares subject
to this Award are thereupon forfeited, except that if such employment
terminates (i) at a time when Grantee has attained age 55 and has at least
five years of vesting service under the Duke Energy Retirement Cash Balance
Plan or Cinergy Corp. Non-Union Employees’ Pension Plan, or under another
retirement plan of the Corporation or a Subsidiary which plan the Committee, or
its delegatee, in its sole discretion, determines to be the functional
equivalent of the Duke Energy Retirement Cash Balance Plan or the Cinergy Corp.
Non-Union Employees’ Pension Plan, unless the Committee, or its delegatee, in
its sole discretion, determines that Grantee is in violation of any obligation
identified in Section 3, (ii) as the result of the Grantee’s death, (iii) as
the result of the Grantee’s permanent and total disability within the meaning
of Code Section 22(e)(3), (iv) as the result of the termination of
such employment by the Corporation, or employing Subsidiary, other than for
cause, as determined by the Corporation or employing Subsidiary, in its sole
discretion, or (v) as the direct and sole result, as determined by the
Corporation, or employing Subsidiary, in its sole discretion, of the
divestiture of assets, a business, or a company, by the Corporation or a
Subsidiary, the Performance Shares subject to this Award shall vest upon such
determination of the achievement of each Performance Goal, at such vesting
percentage determined by the Committee, or its delegatee, in its sole
discretion, by prorating on the basis of the portion of the Performance Period
that such employment continued while Grantee was entitled to payment of salary
(unless such termination occurs after the end of the Performance Period, in
which event the number of Performance Shares earned, if any, shall not be
prorated).

 

In
the event that Grantee is on an employer-approved, personal leave of absence on
the date that the determination of the achievement of each Performance Goal is
made, then, unless prohibited by law, vesting shall be postponed and shall not
occur unless and until Grantee returns to active service in accordance with the
terms of the approved personal leave of absence and before November 1 of
the calendar year immediately following the calendar year in which the
Performance Period ends.  In the event
Grantee does not return to active service from such leave of absence prior to November 1
of the calendar year immediately following the calendar year in which the
Performance Period ends, any Performance Shares covered by this Award that were
not vested as of the commencement of such leave shall be immediately forfeited
(as if Grantee terminated employment for purposes of Section 4
hereof).   Further, in the event that
such determination is made and during any portion of the Performance Period the
Grantee was on employer-approved, personal leave of absence, the applicable
vesting percentage shall be determined by the Committee, or its delegatee, in
its sole discretion, to reflect only that portion of the Performance Period
during which such employment continued while the Grantee was entitled to
payment of salary.

 

 

(c) In
the event that a Change in Control occurs before the Performance Period has
ended and (i) before the Grantee’s continuous employment by the
Corporation, including Subsidiaries, terminates, or (ii) after such
employment terminates during the Performance Period, (A) at a time when
Grantee is considered “retired”, unless the Corporation, in its sole
discretion, determines that Grantee is in violation of any obligation
identified in Section 3, or (B) as the result of an event listed in
items (ii) — (v) of the first sentence of Section 2(b), the
Performance Shares subject to this Award shall vest upon such occurrence, at
such vesting percentage determined by the Committee, or its delegatee, in its
sole discretion, by prorating down, assuming performance at the target level
for each Performance Goal, on the basis
of the portion of the Performance Period that has elapsed prior to the time of
such occurrence (or such earlier termination of employment), and the remaining
Performance Shares shall be forfeited, irrespective of any subsequent
determination of the achievement of each Performance Goal.

 

Section 3.              Violation of Grantee Obligation.  In consideration of the continued vesting
opportunity provided under Section 2 following the termination of Grantee’s
continuous employment by the Corporation, including Subsidiaries, if, at the
time of such termination of employment, Grantee is considered “retired”,
Grantee agrees that during the period beginning with such termination of
employment and ending with the third anniversary of the Date of Grant (“Restricted
Period”), Grantee shall not (i) without the prior written consent of the
Corporation, or its delegatee, become employed by, serve as a principal,
partner, or member of the board of directors of, or in any similar capacity
with, or otherwise provide service to, a competitor, to the detriment, of the
Corporation or any Subsidiary, or (ii) violate any of Grantee’s other
noncompetition obligations, or any of Grantee’s nonsolicitation or
nondisclosure obligations, to the Corporation or any Subsidiary.  The noncompetition obligations of clause (i) of
the preceding sentence shall be limited in scope and shall be effective only to
competition with the Corporation or any Subsidiary in the businesses of:  production, transmission, distribution, or
retail or wholesale marketing or selling of electricity; resale or arranging
for the purchase or for the resale, brokering, marketing, or trading of
electricity or derivatives thereof; energy management and the provision of
energy solutions; development and management of fiber optic communications
systems; development and operation of power generation facilities, and sales
and marketing of electric power, domestically and abroad; and any other
business in which the Corporation, including Subsidiaries, is engaged at the
termination of Grantee’s continuous employment by the Corporation, including
Subsidiaries; and within the following geographical areas (i) any country
in the world where the Corporation, including Subsidiaries, has at least US$25
million in capital deployed as of termination of Grantee’s continuous employment
by Corporation, including Subsidiaries; (ii) the continent of North
America; (iii) the United States of America and Canada; (iv) the
United States of America; (v) the states of North Carolina, South
Carolina, Virginia, Georgia, 

 

 

Florida, Texas, California, Massachusetts,
Illinois, Michigan, New York, Colorado, Oklahoma and Louisiana; (vi) the
states of North Carolina, South Carolina, Texas, Colorado, Ohio, Kentucky, and
Indiana; and (vii) any state or states with respect to which was conducted
a business of the Corporation, including Subsidiaries, which business
constituted a substantial portion of Grantee’s employment.  The Corporation and Grantee intend the above
restrictions on competition in geographical areas to be entirely severable and
independent, and any invalidity or enforceability of this provision with
respect to any one or more of such restrictions, including areas, shall not
render this provision unenforceable as applied to any one or more of the other
restrictions, including areas.  If any
part of this provision is held to be unenforceable because of the duration,
scope or area covered, the Corporation and Grantee agree to modify such part,
or that the court making such holding shall have the power to modify such part,
to reduce its duration, scope or area, including deletion of specific words and
phrases, i.e., “blue penciling”, and in its modified, reduced or blue pencil
form, such part shall become enforceable and shall be enforced.  Nothing in Section 3 shall be construed
to prohibit Grantee from being retained during the Restricted Period in a
capacity as an attorney licensed to practice law, or to restrict Grantee from
providing advice and counsel in such capacity, in any jurisdiction where such
prohibition or restriction is contrary to law.

 

Section 4.              Forfeiture/Expiration.  Any Performance Share subject to
this Award shall be forfeited upon the termination of the Grantee’s continuous
employment by the Corporation, including Subsidiaries, from the Date of Grant,
except to the extent otherwise provided in Section 2, and, if not
previously vested and paid, or deferred, or forfeited, shall expire immediately
before the tenth (10th) anniversary of the Date of Grant.  Any Dividend Equivalent subject to this Award
shall expire at the time its tandem Performance Share (i) is vested and
paid, or deferred, (ii) is forfeited, or (iii) expires.

 

Section 5.              Dividend
Equivalent Payment.  Payment
with respect to any Dividend Equivalent subject to this Award that is in tandem
with a Performance Share that is vested and paid shall be paid in cash to the
Grantee at the same time as the vested Performance Share as provided in Section 6,
or, if the vested Performance Share is deferred by Grantee as provided in Section 6,
payment with respect to the tandem Dividend Equivalent shall likewise be
deferred.  The Dividend Equivalent
payment amount shall equal the aggregate cash dividends declared and paid with
respect to one (1) share of Common Stock for the period beginning on the
Date of Grant and ending on the date the vested, tandem Performance Share is
paid or deferred and before the Dividend Equivalent expires.  However, should the timing of a particular
payment under Section 6 to the Grantee in shares of Common Stock in
conjunction with the timing of a particular cash dividend declared and paid on
Common Stock be such that the Grantee receives such shares without the right to
receive such dividend and the Grantee would not otherwise be entitled to
payment under the expiring Dividend Equivalent with respect to such dividend,
the Grantee, nevertheless, shall be 

 

 

entitled
to such payment.  Dividend Equivalent
payments shall be subject to withholding for taxes.

 

Section 6.              Payment of Performance Shares.   Payment of Performance Shares
subject to this Award that become vested shall be made to the Grantee on the
earlier of: (i) the calendar year immediately following the Performance
Period, or (ii) within 30 days after the occurrence of a “change in the
ownership,” a “change in the effective control” or a “change in the ownership
of a substantial portion of the assets” of the Corporation within the meaning
of Section 409A of the Code, except to the extent deferred by the Grantee
in accordance with such procedure as the Committee, or its designee, may
prescribe. Payment (or deferrals, as applicable) shall be subject to
withholding for taxes. Payment shall be in the form of one (1) share of
Common Stock for each full vested Performance Share, and any fractional vested
Performance Share shall be rounded up to the next whole share for purposes of
both vesting under Section 2 and payment under Section 6.  Notwithstanding the foregoing, the number of
shares of Common Stock that would otherwise be paid or deferred (valued at Fair
Market Value on the date the respective unit of Phantom Stock became vested, or
if later, payable) shall be reduced by the Committee, or its delegatee, in its
sole discretion, to fully satisfy tax withholding requirements.  In the event that payment, after any
reduction in the number of shares of Common Stock to satisfy withholding for
tax requirements, would be for less than ten (10) shares of Common Stock,
then, if so determined by the Committee, or its delegatee, in its sole
discretion, payment, instead of being made in shares of Common Stock, shall be
made in a cash amount equal in value to the shares of Common Stock that would
otherwise be paid, valued at Fair Market Value on the date the respective
Performance Shares became vested.

 

Section 7.              No Employment
Right.  Nothing in this Agreement or in the Plan
shall confer upon the Grantee the right to continued employment with the
Corporation or any Subsidiary, or affect the right of the Corporation or any
Subsidiary to terminate the employment or service of the Grantee at any time
for any reason.

 

Section 8.              Nonalienation.  The Performance Shares and
Dividend Equivalents subject to this Award are not assignable or transferable
by Grantee.  Upon any attempt to
transfer, assign, pledge, hypothecate, sell or otherwise dispose of any such
Performance Share or Dividend Equivalent, or of any right or privilege
conferred hereby, or upon the levy of any attachment or similar process upon
such Performance Share or Dividend Equivalent, or upon such right or privilege,
such Performance Share or Dividend Equivalent, or such right or privilege,
shall immediately become null and void.

 

Section 9.              Determinations.  Determinations by the Committee,
or its delegatee, shall be final and conclusive with respect to the
interpretation of the Plan and this Agreement.

 

 

Section 10.            Governing Law.  This Agreement shall be
governed, construed and enforced in accordance with the laws of the State of
Delaware applicable to transactions that take place entirely within that state.

 

Section 11.            Conflicts with
Plan, Correction of Errors, and Grantee’s Consent.  In the event that any provision of this Agreement conflicts in any way
with a provision of the Plan, such Plan provision shall be controlling and the
applicable provision of this Agreement shall be without force and effect to the
extent necessary to cause such Plan provision to be controlling.  In the event that, due to administrative
error, this Agreement does not accurately reflect an Award properly granted to
the Grantee pursuant to the Plan, the Corporation, acting through its Executive
Compensation and Benefits Department, reserves the right to cancel any
erroneous document and, if appropriate, to replace the cancelled document with
a corrected document.  It is the
intention of the Corporation and the Grantee that this Award not result in
unfavorable tax consequences to Grantee under Code Section 409A.  Accordingly, Grantee consents to such
amendment of this Agreement as the Corporation may reasonably make in
furtherance of such intention, and the Corporation shall promptly provide, or
make available to, Grantee a copy of any such amendment.  Grantee acknowledges and agrees that payments
made under this Agreement are subject to the Corporation’s requirement that the
Grantee reimburse the portion of any payment where such portion of the payment
was predicated     upon the achievement
of financial results that are subsequently the subject of a restatement caused
or partially caused by Grantee’s fraud or misconduct.

 

Section 12.            Compliance with Law.  The Corporation shall make reasonable
efforts to comply with all applicable federal and state securities laws
applicable to the Plan and this Award; provided, however, notwithstanding any
other provision of this Award, the Corporation shall not be obligated to
deliver any shares of Common Stock pursuant to this Award if the delivery
thereof would result in a violation of any such law.

 

Notwithstanding the
foregoing, this Award is subject to cancellation by the Corporation in its sole
discretion unless the Grantee, by not later than                                        ,
has signed a duplicate of this Agreement, in the space provided below, and
returned the signed duplicate to the Executive Compensation and Benefits
Department - Performance Award [(STO6E)], Duke Energy Corporation, P. O.
Box 1007, Charlotte, NC 28201-1007, which, if, and to the extent, permitted by
the Executive Compensation and Benefits Department, may be accomplished by
electronic means.

 

 

IN
WITNESS WHEREOF, the Corporation has caused this Agreement to be executed and
granted in Charlotte, North Carolina, to be effective as of the Date of Grant.

 

	
  ATTEST

  	
   

  	
  DUKE ENERGY CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Corporate Secretary

  	
   

  	
  Its:   Chief
  Executive Officer

  

 

 

Acceptance of Performance
Award

 

                IN WITNESS OF Grantee’s
acceptance of this Performance Award and Grantee’s agreement to be bound by the
provisions of this Agreement and the Plan, Grantee has signed this Agreement
this            day of                                           ,               .

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Grantee’s Signature

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (print name)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (address)

  

 

 

EXHIBIT A

 

CALCULATION OF CAGR

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]