Document:

Exhibit 10.jjj

 

 

 

 

 

 

 

 

CINERGY CORP. EXCESS PROFIT
SHARING PLAN

 

(Effective as of January 1, 2003)

 

 

 

 

 

(Note:  This Table of Contents is not part of the
Cinergy Corp. Excess Profit Sharing Plan; instead, this Table of Contents is
merely for convenience of reference.)

 

 

TABLE OF CONTENTS

 

 

	
  ARTICLE I

  	
  NATURE AND PURPOSE
  OF PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Type of Plan

  	
   

  
	
  1.2

  	
  Purpose of Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  	
  DEFINITIONS
  AND RULES OF CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Definitions

  	
   

  
	
  2.2

  	
  Rules of Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  ELIGIBILITY
  AND PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Eligibility

  	
   

  
	
  3.2

  	
  Employer Profit
  Sharing Contributions

  	
   

  
	
  3.3

  	
  Cessation of Participation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  PARTICIPANTS’ ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Establishment of Account

  	
   

  
	
  4.2

  	
  Earnings and Losses

  	
   

  
	
  4.3

  	
  Credits to Account

  	
   

  
	
  4.4

  	
  Accounts Unfunded

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  DISTRIBUTION OF
  BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  General Distribution Rules

  	
   

  
	
  5.2

  	
  Distribution Upon
  a Change in Control

  	
   

  
	
  5.3

  	
  Death Benefits

  	
   

  
	
  5.4

  	
  Designation of Beneficiary

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Administrator

  	
   

  
	
  6.2

  	
  Notices

  	
   

  
	
  6.3

  	
  Powers and Duties of
  the Committee

  	
   

  

 

 

i

 

	
  ARTICLE VII

  	
  AMENDMENT AND
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Amendment

  	
   

  
	
  7.2

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Relationship

  	
   

  
	
  8.2

  	
  Other Benefits and Plans

  	
   

  
	
  8.3

  	
  Anticipation of Benefits

  	
   

  
	
  8.4

  	
  No Guarantee of Continued
  Employment

  	
   

  
	
  8.5

  	
  Waiver of Breach

  	
   

  
	
  8.6

  	
  Protective Provisions

  	
   

  
	
  8.7

  	
  Benefit

  	
   

  
	
  8.8

  	
  Responsibility for
  Legal Effect

  	
   

  
	
  8.9

  	
  Tax Withholding

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AUTHORIZED SIGNATURE

  	
   

  

 

 

ii

 

CINERGY CORP. EXCESS PROFIT SHARING PLAN

 

ARTICLE I

NATURE AND PURPOSE OF PLAN

 

1.1                                 Type of Plan.  The name of this Plan is the Cinergy Corp.
Excess Profit Sharing Plan, effective January 1, 2003.  The Plan is maintained by the Company as an
unfunded, nonqualified deferred compensation plan for a select group of the
Employer’s management or highly-compensated employees.

 

1.2                                 Purpose of Plan.  The purpose of the Plan is to restore the
additional employer profit sharing contributions that an Eligible Employee
would have received under the Qualified Plan if the limitations of Code
Subsection 415(c) and Code Paragraph 401(a)(17) were not imposed to limit the
Eligible Employee’s employer profit sharing contributions under the Qualified
Plan.

 

ARTICLE II

DEFINITIONS
AND RULES OF CONSTRUCTION

 

2.1                                 Definitions.  As used in the Plan, the following words and
phrases, when capitalized, have the following meanings except when used in a
context that plainly requires a different meaning:

 

(a)                                  “Account” means the record of a Participant’s total interest in the
Plan.

 

(b)                                 “Beneficiary” means, with respect to a Participant, the person or
persons designated pursuant to Section 5.4 to receive benefits under the
Plan in the event of the Participant’s death.

 

(c)                                  “Board of Directors” means the duly constituted board of directors of
the Company on the applicable date.

 

(d)                                 “Change in Control” means an event described in Subsection 5.2(c).

 

(e)                                  “Code” means the Internal Revenue Code of 1986, as amended from
time to time, and interpretive rules and regulations thereunder.

 

(f)                                    “Committee” means a committee composed of those members of the
Compensation Committee of the Board of Directors who are not Participants in
the Plan.  To the extent authority to
administer the Plan has been delegated to the Cinergy Corp. Benefits Committee,
the term “Committee” shall mean the Cinergy Corp. Benefits Committee.

 

(g)                                 “Company” means Cinergy Corp., a Delaware Corporation, and any
corporation that shall succeed to its business and adopt the Plan.

 

1

 

(h)                                 “Effective Date” means January 1, 2003.

 

(i)                                     “Eligible Employee” means a management or highly compensated Employee
who is selected by the Committee to participate in this Plan.

 

(j)                                     “Employee” means any person who is classified by the Employer as an
employee, including officers of the Company or a Related Employer.

 

(k)           “Employer”
means the Company and any Related Employer.

 

(l)                                     “Employer Profit Sharing Contribution” means, with respect to a
Participant, the contribution made by the Employer on behalf of a Participant
pursuant to Section 3.2.

 

(m)                               “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and interpretative rules and regulations thereunder.

 

(n)                                 “Insolvent” means, with respect to the Company, the Company being unable
to pay its debts as they are due, or the Company being subject to a pending
proceeding as a debtor under the United States Bankruptcy Code.

 

(o)                                 “Investment Options” means, with respect to any period, the investment
options that the Committee makes available to Participants under the Plan.  The Committee, in its sole discretion, may
from time to time establish procedures under which one or more Investment
Options are made available, in accordance with terms and conditions established
by the Committee, only to certain Participants and/or only for certain periods.

 

(p)                                 “Participant” means an Eligible Employee or former Eligible Employee who
has an interest in the Plan pursuant to Section 3.2.

 

(q)                                 “Plan” means this instrument, as amended from time to time, and the
nonqualified deferred compensation plan so established.

 

(r)                                    “Plan Year” means a calendar year commencing on or after January 1,
2003.

 

(s)                                  “Qualified Plan” means collectively the defined contribution plan(s)
intended to meet the qualification requirements of Code Subsection 401(a) that
the Committee, in its sole discretion, may designate from time to time, and
which shall initially be limited to the Cinergy Corp. Non-Union Employees’
401(k) Plan.

 

2

 

(t)                                    “Rabbi Trust” means the grantor trust that the Company, in its sole
discretion, may establish pursuant to Subsection 4.4(b) for the deposit of
funds to be used for the Employers’ purpose of paying benefits accrued under
the Plan, subject to the claims of the Employers’ general creditors in the
event that any Employer becomes Insolvent.

 

(u)                                 “Related Employer” means any Employer that, together with the Company,
is under common control or a member of an affiliated service group, as
determined under Code Subsections 414(b), (c), (m), and (o).

 

(v)                                 “Termination of Employment” means, with respect to a Participant, the
cessation of the relationship of Employer and Employee between the Participant
and the Employer for any reason other than the Participant’s death.  A Participant shall not be treated as having
incurred a Termination of Employment until the employment relationship between
the Participant and all Related Employers has terminated.

 

(w)                               “Trustee” means the trustee of the Rabbi Trust that the Company, in its
sole discretion, may establish pursuant to Subsection 4.4(b).

 

2.2                                 Rules of Construction.  The following rules of construction shall
govern in interpreting the Plan.  The
provisions of this Plan shall be construed and governed in all respects under
and by the internal laws of the State of Ohio, to the extent not preempted by
federal law.  Words used in the
masculine gender shall be construed to include the feminine gender, where
appropriate, and vice versa.  Words used
in the singular shall be construed to include the plural, where appropriate,
and vice versa.  The headings and
subheadings in the Plan are inserted for convenience of reference only and are
not to be considered in the construction of any provision of the Plan.  If any provision of the Plan shall be held
to be illegal or invalid for any reason, that provision shall be deemed to be
null and void, but the invalidation of that provision shall not otherwise
impair or affect the Plan.

 

ARTICLE III

ELIGIBILITY
AND PARTICIPATION

 

3.1                                 Eligibility.  Participation in the Plan is limited to
Eligible Employees.  It is intended that
participation be limited to Employees who will qualify as members of a “select
group of management or highly compensated employees” under Title I of ERISA.

 

3.2                                 Employer Profit
Sharing Contributions.  If an Eligible Employee is
credited with an employer profit sharing contribution under the Qualified Plan
for a Plan Year, to the extent applicable the Employer shall credit an Employer
Profit Sharing Contribution to the Participant’s Account equal to the
additional employer profit sharing contribution that the Eligible Employee
would have had credited to his

 

3

 

account in the Qualified Plan for the Plan Year if
the limitations of Code Subsection 415(c) and Code Paragraph 401(a)(17) were
not imposed to limit the Eligible Employee’s employer profit sharing contribution
under the Qualified Plan.

 

3.3                                 Cessation of
Participation.  Any Participant who ceases to
be an Eligible Employee, but continues to be an Employee, shall cease to be
eligible to receive contributions under this Article but shall continue to
have a Account, shall continue to be credited with earnings and losses on his
Account under Section 4.2 (until the Account is fully distributed pursuant
to Article V) and shall be entitled to receive benefits under
Article V.

 

ARTICLE IV

PARTICIPANTS’
ACCOUNT

 

4.1                                 Establishment of Account.  The Committee shall create and maintain
adequate records to disclose the interest in the Plan of each Participant and
Beneficiary.  Records shall be in the
form of individual bookkeeping accounts, which shall be credited with
contributions pursuant to Sections 3.2 and earnings and losses pursuant to
Section 4.2, and debited with any payments pursuant to
Article V.  The Participant shall
have the same vested interest in his Account under the Plan as he has with
respect to employer profit sharing contributions under the Qualified Plan, and
all determinations regarding the Participant’s vested interest in his Account
under the Plan shall be made by the Committee in accordance with the terms of
the Qualified Plan.  Notwithstanding the
preceding sentence, the Participant’s interest in his Account shall be subject
to the claims of the Employers’ general creditors in the event the Employer
becomes Insolvent.

 

4.2           Earnings and Losses.

 

(a)                                  Deemed Investment of Accounts.  During each Plan Year, a Participant’s
Account shall be credited with earnings and losses as though they are invested,
pursuant to Subsection (b), Subsection (c) or both, as applicable, in
one or more of the Investment Options. 
The deemed investment of a Participant’s Account among the Investment
Options is solely the measure of the investment performance of the
Account.  It does not give the
Participant any ownership interest in any Investment Option, nor does it bind
the Company, the Committee, or the Trustee as to the investment of any Rabbi
Trust or any other amounts represented by the Account.

 

(b)                                 Initial Deemed Investment.  Each Employer Profit Sharing Contribution
initially shall be deemed invested in such Investment Option(s) as the
Committee, in its sole discretion, may from time to time designate in
investment procedures, and which initially shall be the Investment Option known
as the Cinergy Corp. Common Stock Fund. 
The Employer Profit Sharing Contribution for each Plan Year and earnings
and losses thereon 

 

4

 

shall remain deemed invested in such Investment Option(s) until the Employer
Profit Sharing Contribution for the Plan Year (and earnings thereon) becomes
subject to Participant direction, which shall occur at such time or times as
the Committee, in its sole discretion, may from time to time prescribe in
investment procedures, and which initially shall be the earlier of (i) the date
on which the Participant attains age 50 or (ii) the date that is three years
from the date that the Employer Profit Sharing Contribution for the Plan Year
is credited to the Participant’s Account. 
An Employer Profit Sharing Contribution that is subject to Participant
direction shall be deemed invested in accordance with Subsection (c).

 

(c)                                  Election Procedure.  Each Participant may make elections, on a
form provided by the Committee, to allocate the portion, if any, of his Account
that is subject to Participant direction among the Investment Options.  If the Participant fails to make an election
with respect to his Account, he shall be deemed to have elected to allocate the
portion of his Account that is subject to Participant direction to the
Investment Option(s) as the Committee, in its sole discretion, may from time to
time designate in investment procedures. 
The Committee, in its sole discretion, may establish from time to time
investment procedures for a Participant to change his Investment Option
designations (for his future amounts subject to Participant direction, his existing
amounts subject to Participant direction, or both).  Until a Participant timely files a new investment election form,
his prior Investment Option designations shall control.

 

4.3                                 Credits to Account.  The Employer Profit Sharing Contribution
shall be credited to a Participant’s Account in terms of cash on the same
date(s) as employer profit sharing contributions are credited to participants’
accounts under the Qualified Plan.

 

4.4           Accounts Unfunded.

 

(a)                                  Accounts shall be accounting accruals, in the names of Participants, on
the Employer’s books.  Accounts shall be
unfunded, so that the Employer’s obligation to pay benefits under the Plan is
merely a contractual duty to make payments when due under the Plan.  The Employer’s promise to pay benefits under
the Plan shall not be secured in any way, and except as provided in
Subsection (b), the Company shall not set aside or segregate assets for
the purpose of paying amounts credited to Participants’ Account.

 

(b)                                 Notwithstanding the provisions of Subsection (a), the Company, in
its sole discretion, may establish a Rabbi Trust.  The Employer, in its sole discretion, may make such contributions
to the Rabbi Trust as the Committee determines are appropriate to enable the
Employer to pay benefits under the Plan. 
Any Rabbi Trust established under this Section

 

5

 

shall be created pursuant to a written trust
document that conforms to the model form of rabbi trust agreement approved by
the Internal Revenue Service in Revenue Procedure 92-64 (as amended
from time to time).

 

ARTICLE V

DISTRIBUTION
OF BENEFITS

 

5.1           General Distribution Rules.

 

(a)                                  General Provisions.  Except as otherwise provided in
Sections 5.2 and Section 5.3, a Participant’s Account shall be
distributed to the Participant (or to his Beneficiary in the event of his
death) as provided in this Section.

 

(b)                                 Participant’s Election.  A Participant may elect, on a form provided
by the Committee and from among the options described in this Section, the form
for the payment of his Account. 
Notwithstanding the payment terms designated by a Participant on any
prior election form, a Participant may elect to change the form of payment of
his Account to a form of payment otherwise permitted under this Section; provided
that such election shall be made on a form provided by the Committee, and
provided further that any such election made less than one year prior to the
Participant’s Termination of Employment shall not be valid, and in such case,
the distribution of his Account shall be made in accordance with the latest
valid election or elections of the Participant.

 

(1)                                  Form of Distribution.  A Participant may elect to have his
contributions (and attributable earnings) for a Plan Year distributed in one of
the following forms:

 

	
  (A)

  	
  A lump sum payment; or

  
	
   

  	
   

  
	
  (B)

  	
  Substantially equal annual
  installments over a specified number of two to ten years.

  

 

(2)                                  Time of Distribution.  Distribution of a Participant’s interest in
his Account shall commence as soon as reasonably practicable after the earlier
of the Participant’s death or his Termination of Employment.  Subsequent installments shall be payable on
or as soon as administratively feasible following the first business day of
each succeeding year.

 

(c)                                  Default Procedure.  If a Participant fails to make an election
pursuant to this Section, then, except as otherwise provided in
Section 5.2  and Section 5.3,
the Participant’s Account (and attributable earnings) shall be distributed in
five substantially equal annual installments commencing as 

 

6

 

                                                                soon as reasonably
practicable after the earlier of the Participant’s death or his Termination of
Employment.

 

(d)                                 Distribution in Cash.  All distributions from the Plan shall be made
in the form of cash.

 

(e)                                  Small Accounts.  Notwithstanding a Participant’s election
regarding the form of payment of his Account, in the event that a Participant’s
Account has an aggregate value of less than $50,000 as of his Termination of
Employment, the Committee shall have the discretion to distribute the
Participant’s entire interest in his Account in a single lump sum payment in
cash.

 

5.2           Distribution Upon a Change in Control.

 

(a)                                  Election for a Lump Sum Payment.  Each Participant who is designated as a
“Selected Participant” by the Committee of the Company (a “Selected
Participant”) shall be entitled to make a special payment election in
accordance with the provisions of this Section 5.2(a).

 

(i)                                     Distribution Pursuant to Special Payment Election.  A Selected Participant may
elect, on a form provided by the Committee, to receive a distribution of his
Account in a single lump sum payable no later than 30 days after the later of
(1) the occurrence of a Change in Control or (2) the date of his Termination
of Employment.

 

(ii)                                  Effectiveness of Special Payment Election.  An election made pursuant to this Section
5.2(a) shall become operative only upon the occurrence of a Change in
Control.  Once operative, an election
made pursuant to this Section 5.2(a) shall override any other payment election
made by the Selected Participant pursuant to Section 5.1(b), but only if the
Selected Participant’s Termination of Employment occurs either (1) prior to the
occurrence of a Change in Control or (2) during the 24-month period commencing
upon the occurrence of a Change in Control.

 

(iii)                               Deadline for Special Payment Election.  In order to be effective, an election made
pursuant to this Section 5.2(a) must be made either:

 

(1)                                  Prior to the occurrence of a Potential Change in Control; or

 

(2)                                  With the consent of the Committee, during the thirty-day period
commencing upon the occurrence of a Potential Change in Control.

 

7

 

In
the event that a Potential Change in Control occurs and subsequently ceases to
exist, other than as a result of a Change in Control, such Potential Change in
Control shall be disregarded for purposes of this Section 5.2(a)(iii).

 

(iv)                              Withdrawal of Special Payment Election.  A Selected Participant may withdraw, on a
form provided by the Committee, a special payment election made by him pursuant
to this Section 5.2(a) at anytime specified in Section 5.2(a)(iii)(1) or (2).

 

(b)                               Committee Discretion for a Lump Sum Payment.  Notwithstanding any other
Section, if a Change in Control occurs, the Committee in its sole discretion
may elect to accelerate the distribution of a Participant’s Account so that a
Participant’s Account shall be distributed to the Participant (or, in the event
of his death, to his Beneficiary) in a single lump sum payment no later than 30
days after the Change in Control occurs.

 

(c)                                Definition of Change in Control.  A “Change in Control” of the Company will be
deemed to have occurred if any of the following events occur:

 

(i)                                     Any Person is or becomes the beneficial owner (as defined in Rule 13d-3
under the Securities Exchange Act of 1934, as amended (“1934 Act”)), directly
or indirectly, of securities of the Company (not including in the securities
beneficially owned by such Person any securities acquired directly from the
Company or its affiliates) representing more than twenty percent (20%) of the
combined voting power of the Company’s then outstanding securities, excluding
any Person who becomes such a beneficial owner in connection with a transaction
described in Clause (1) of Paragraph (ii) below; or

 

(ii)                                  There is consummated a merger or consolidation of the Company or any
direct or indirect subsidiary of the Company with any other corporation,
partnership or other entity, other than (1) a merger or consolidation that
would result in the voting securities of the Company outstanding immediately
prior to that merger or consolidation continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or its parent) at least sixty percent (60%) of the combined
voting power of the securities of the Company or the surviving entity or its
parent outstanding immediately after the merger or consolidation, or (2) a
merger or consolidation effected to im­plement a recapitalization of the
Company (or similar transaction) in which no Person is or becomes the
beneficial owner, directly or indirectly, of securities of the Company (not
including in the

 

8

 

                                                securities beneficially owned by such a Person any securities acquired
directly from the Company or its affiliates other than in connection with the
acquisition by the Company or its affiliates of a business) representing twenty
percent (20%) or more of the combined voting power of the Company’s then
outstanding securities; or

 

(iii)                               During any period of two (2) consecutive years, individuals who at the
beginning of that period constitute the Board of Directors and any new director
(other than a director whose initial assumption of office is in connection with
an actual or threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of the Company)
whose appointment or election by the Company’s stockholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then
still in office who either were directors at the beginning of that period or
whose appointment, election, or nomination for election was previously so
approved or recommended cease for any reason to constitute a majority of the
Board of Directors; or

 

(iv)                              The stockholders of the Company approve a plan of complete liquidation
or dissolution of the Company or there is consummated a sale or disposition by
the Com­pany of all or substantially all of the Company’s assets, other than a
sale or disposition by the Company of all or substantially all of the Company’s
assets to an entity, at least sixty percent (60%) of the combined voting power
of the voting se­curities of which are owned by stockholders of the Company in
substantially the same proportions as their ownership of the Company
immediately prior to the sale.

 

(d)                               Definition of Potential Change in Control.  A “Potential Change in Control” means any period
during which any of the following circumstances exist:

 

(i)                                     The Company enters into an agreement, the consummation of which would
result in the occurrence of a Change in Control; provided that a Potential
Change in Control shall cease to exist upon the expiration or other termination
of such agreement; or

 

(ii)                                  The Company or any Person publicly announces an intention to take or to
consider taking actions which, if consummated, would constitute a Change in
Control; provided that a Potential Change in Control shall cease to exist when
the Company or such Person publicly announces that it no longer has such an
intention; or

 

(iii)                               Any Person who is or becomes the beneficial owner (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of securities 

 

9

 

                                                of the Company representing ten percent (10%) or more of the combined
voting power of the Company’s then outstanding securities, increases such
Person’s beneficial ownership of such securities by an amount equal to five
percent (5%) or more of the combined voting power of the Company’s then
outstanding securities; or

 

(iv)                              The Board of Directors adopts a resolution to the effect that, for
purposes hereof, a Potential Change in Control has occurred.

 

Notwithstanding anything herein to the contrary, a
Potential Change in Control shall cease to exist not later than the date that
(i) the Board of Directors determines that the Potential Change in Control no
longer exists, or (ii) a Change in Control occurs.

 

(e)                                  Definition of Person.  “Person” has the meaning set forth in
paragraph 3(a)(9) of the 1934 Act, as modified and used in subsections 13(d)
and 14(d) of the 1934 Act; however, a Person will not include the following:
(1) the Company or any of its subsidiaries or affiliates; (2) a trustee or
other fiduciary holding securities under an employee benefit plan of the
Company or any of its subsidiaries or affiliates; (3) an underwriter
temporarily holding securities pursuant to an offering of those securities; or
(4) a corporation owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their ownership of stock of
the Company.

 

5.3                                 Death Benefits.  In the event that a Participant dies before
his Account is completely distributed, his Beneficiary shall be entitled to a
death benefit equal to the amount credited to the Participant’s Account
immediately before his death.  The form
and timing of the payment of the death benefit shall be determined pursuant to
Section 5.1.

 

5.4                                 Designation of
Beneficiary.  A Participant’s Beneficiary
shall be the person or persons, including a trustee, designated by the
Participant pursuant to the practices of, or rules prescribed by, the
Committee, as the recipient of any benefits payable under the Plan following
the Participant’s death.  To be
effective, a Beneficiary designation must be filed with the Committee during
the Participant’s life on a form prescribed by the Committee; provided,
however, that finalized divorce or marriage (other than a common law marriage)
shall automatically revoke a previously filed Beneficiary designation, unless
in the case of divorce the former spouse was not designated as the Beneficiary
or in the case of marriage the Participant’s new spouse is already the
designated Beneficiary.  If the
Participant designates more than one Beneficiary, any payments under this
Article to each Beneficiary shall be made in equal shares unless the
Participant has designated otherwise, in which case the payments shall be made
in the shares designated by the Participant. 
If no person has been 

 

10

 

                                                designated as the Participant’s Beneficiary, if a Participant’s
Beneficiary designation has been revoked by marriage or divorce, or if no
person designated as Beneficiary survives the Participant, the Participant’s
estate shall be his Beneficiary.

 

ARTICLE VI

ADMINISTRATION

 

6.1                                 Administrator.  The Cinergy Corp. Benefits Committee shall
be the Administrator of the Plan.  All
decisions of the Committee shall be by a vote of a majority of its members and
shall be final and binding.

 

6.2                                 Notices.  Any notice or filing required or permitted
to be given to the Committee under the Plan shall be sufficient if it is in
writing and is hand delivered, or sent by registered or certified mail, to any
member of the Committee or its designate. 
The notice or filing shall be deemed made as of the date of delivery, or
if delivery is made by mail, as of the date shown on the postmark on the receipt
for registration or certification.

 

6.3                                 Powers and Duties of the
Committee.  Subject to the specific
limitations stated in this Plan, the Committee shall have the following powers,
duties, and responsibilities:  to carry
out the general administration of the Plan; to cause to be prepared all forms
necessary or appropriate for the administration of the Plan; to keep
appropriate books and records; to determine amounts to be distributed to
Participants and Beneficiaries under the provisions of the Plan; to determine,
consistent with the provisions of this instrument, all questions of
eligibility, rights, and status of Participants and Beneficiaries under the
Plan; to issue, amend, and rescind rules relating to the administration of the
Plan, to the extent those rules are consistent with the provisions of this
document; to exercise all other powers and duties specifically conferred upon
the Committee elsewhere in this document; and to interpret, with discretionary
authority, the provisions of this Plan and to resolve, with discretionary
authority, all disputed questions of Plan interpretation and benefit
eligibility.

 

ARTICLE VII

AMENDMENT
AND TERMINATION

 

7.1                                 Amendment.  The Company reserves the right to amend the
Plan at any time by action of the Board of Directors or the Committee.  The Company, however, may not make any
amendment that reduces a Participant’s benefits accrued as of the date of the
amendment unless the Participant consents in writing to the amendment.  Notwithstanding the foregoing, the Company
may not amend any of the provisions of Section 5.2 within three years of a
Change in Control.

 

7.2                                 Termination.  The Company reserves the right to terminate
the Plan, by action of the Board of Directors or the Committee, at any time it
deems appropriate.  Upon 

 

11

 

                                                termination of the Plan, no further contribution shall be made to the
Plan.  Subject to Section 5.2,
distribution following termination of the Plan shall be made at the time and
under the terms and conditions as the Company, in its sole discretion, shall
determine, which shall commence no later than the earlier of a Participant’s
death or Termination of Employment.

 

ARTICLE VIII

MISCELLANEOUS

 

8.1                                 Relationship.  Notwithstanding any other provision of this
Plan, this Plan and action taken pursuant to it shall not be deemed or
construed to establish a trust or fiduciary relationship of any kind between or
among the Company, Participants, Beneficiaries or any other persons.  The Plan is intended to be unfunded for
purposes of the Code and ERISA.  The
rights of Participants and Beneficiaries to receive payment of deferred
compensation under the Plan is strictly a contractual right of payment, and
this Plan does not grant, nor shall it be deemed to grant Participants,
Beneficiaries, or any other person any interest or right to any of the funds,
property, or assets of the Employer other than as an unsecured general creditor
of the Employer.

 

8.2                                 Other Benefits and Plans.  Nothing in this Plan shall be deemed to
prevent Participants from receiving, in addition to the benefits provided for
under this Plan, any funds that may be distributable to them at any time under
any other present or future retirement or incentive plan of the Employer.

 

8.3                                 Anticipation of Benefits.  Neither Participants nor Beneficiaries shall
have the power to transfer, assign, anticipate, pledge, alienate, or otherwise
encumber in advance any of the payments that may become due under this Plan,
and any attempt to do so shall be void. 
Any payments that may become due under this Plan shall not be subject to
attachment, garnishment, execution, or be transferable by operation of law in
the event of bankruptcy, insolvency, or otherwise.

 

8.4                                 No Guarantee of
Continued Employment.  Nothing contained in this Plan
or any action taken under the Plan shall be construed as a contract of
employment or as giving any Participant any right to be retained in employment
with the Employer.  The Employer specifically
reserves the right to terminate any Participant’s employment at any time with
or without cause, and with or without notice or assigning a reason, subject to
the terms of any written employment agreement between the Participant and the
Employer.

 

8.5                                 Waiver of Breach.  The Company’s or the Committee’s waiver of
any Plan provision shall not operate or be construed as a waiver of any
subsequent breach by the Participant.

 

12

 

8.6                                 Protective Provisions.  Each Participant shall cooperate with the
Company and the Committee by furnishing any and all information requested by
the Company or the Committee in order to facilitate the payment of benefits
under the Plan, and by taking any other relevant action as may be requested by
the Company or the Committee.  If any
Participant refuses so to cooperate, the Company shall have no further
obligation to the Participant or his Beneficiary under this Plan, other than to
distribute to the Participant the 
cumulative contributions that have been made on his behalf, pursuant to
the Plan; provided, however, that the Committee may determine that benefits may
be payable in an amount reduced to compensate the Company for any loss, cost,
damage, or expense suffered or incurred by the Company as a result in any way of
the Participant’s action or failure to act.

 

8.7                                 Benefit.  This Plan shall be binding upon and inure to
the benefit of the Employer and its successors and assigns.

 

8.8                                 Responsibility for Legal
Effect.  Neither the Committee nor the
Company makes any recommendations or warranties, express or implied, or assumes
any responsibility concerning the legal context or other implications or
effects of this Plan.

 

8.9                                 Tax Withholding.  The Employer shall withhold from any
contributions or from any payment made under the Plan such amount or amounts as
may be required by applicable federal, State, or local laws.

 

                Cinergy
Corp. has caused this document to be executed by its duly authorized officer,
as of the 20th day of December, 2002.

 

	
   

  	
  /s/  Timothy J. Verhagen

  
	
  By:

  	
   

  
	
   

  	
  Timothy J. Verhagen

  
	
   

  	
  Vice President

  
	
   

  	
  Human ResourcesExhibit
10.kkk

 

 

	
  (NOTE:

  	
   

  	
  THIS TABLE OF CONTENTS IS NOT PART OF THE
  CINERGY CORP. EXCESS PENSION PLAN; INSTEAD, THIS TABLE OF CONTENTS IS MERELY
  FOR CONVENIENCE OF REFERENCE.)

  

 

TABLE OF CONTENTS

 

	
  INTRODUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  EFFECTIVE DATE OF PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  ELIGIBILITY AND
  PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  SPOUSE’S BENEFIT

  	
   

  
	
  5.1

  	
  Determination of
  Spouse’s Benefit

  	
   

  
	
  5.2

  	
  Method of Payment
  of Spouse’s Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  MANNER OF PAYMENT

  	
   

  
	
  6.1

  	
  Form of Payment

  	
   

  
	
  6.2

  	
  Timing of
  Payment

  	
   

  
	
  6.3

  	
  Method of
  Payments

  	
   

  
	
  6.4

  	
  Small Benefits

  	
   

  
	
  6.5

  	
  Facility
  of Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  NONALIENATION OF BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  ADMINISTRATION

  	
   

  
	
  8.1

  	
  Administrator

  	
   

  
	
  8.2

  	
  Removal
  and Replacement of Committee Members

  	
   

  
	
  8.3

  	
  Disqualification and
  Resignation

  	
   

  
	
  8.4

  	
  Chairperson,
  Services, and Counsel

  	
   

  
	
  8.5

  	
  Meetings

  	
   

  
	
  8.6

  	
  Quorum

  	
   

  
	
  8.7

  	
  Action Without Meeting

  	
   

  
	
  8.8

  	
  Correction of Defects

  	
   

  
	
  8.9

  	
  Reliance Upon Legal Counsel

  	
   

  
	
  8.10

  	
  Expenses

  	
   

  
	
  8.11

  	
  Indemnification

  	
   

  
	
  8.12

  	
  Powers and Duties of Committee

  	
   

  

 

 

	
  ARTICLE 9

  	
  BENEFIT CLAIMS PROCEDURES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  FUNDING POLICY AND METHOD

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  CONTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  MISCELLANEOUS

  	
   

  
	
  12.1

  	
  No Enlargement of Employee Benefits

  	
   

  
	
  12.2

  	
  Notice of Address

  	
   

  
	
  12.3

  	
  Data

  	
   

  
	
  12.4

  	
  No
  Individual Liability

  	
   

  
	
  12.5

  	
  Governing Laws

  	
   

  
	
  12.6

  	
  Severability

  	
   

  
	
  12.7

  	
  Interpretation
  and Regulation of Plan

  	
   

  
	
  12.8

  	
  Communication by
  Participants

  	
   

  
	
  12.9

  	
  Headings

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
  CONTINUED APPROVAL OF
  CINERGY’S PENSION PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
  AMENDMENT AND TERMINATION

  	
   

  
	
  14.1

  	
  Authority to Amend

  	
   

  
	
  14.2

  	
  Merger,  Consolidation, or Change in Control

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
  PARTICIPATION BY OTHER
  EMPLOYERS

  	
   

  
	
  15.1

  	
  Adoption of the Plan

  	
   

  
	
  15.2

  	
  Withdrawal from
  Participation

  	
   

  
	
  15.3

  	
  Cinergy as Agent for Employers

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
  CONTINUANCE BY A SUCCESSOR

  	
   

  

 

-ii-

 

Adopted by the Board of Directors

 

CINERGY CORP.

EXCESS
PENSION PLAN

 

(As Amended and Restated
Effective January 1, 1998)

 

INTRODUCTION

 

Effective January 1, 1986, PSI
Energy, Inc. (formerly Public Service Company of Indiana, Inc. (“PSI”), adopted
an excess benefit plan intended to provide to employees benefits that were
above the level of benefits available under PSI’s qualified pension plan.  This plan was originally named the “PSI
Energy, Inc. Supplemental Pension Plan.” 
Effective January 1, 1989, the Plan was restated and renamed the “PSI
Energy, Inc. Excess Benefit Plan.”

 

As a result of a corporate
reorganization and merger that became effective October 24, 1994 (the
“Merger”), PSI and The Cincinnati Gas & Electric Company (“CG&E”)
became wholly-owned subsidiaries of Cinergy Corp. (“Cinergy”), a public utility
holding company under the Public Utility Holding Company Act of 1935.  Effective January 1, 1997, the PSI Energy,
Inc. Excess Benefit Plan was renamed the “Cinergy Corp. Excess Pension Plan”
(the “Plan”), and the Plan became applicable to Cinergy and any employer (as
defined in the Plan) that adopts the Plan with the consent of Cinergy.  PSI became a participating employer effective
January 1, 1986.  CG&E, Union Light,
Heat & Power Company, and Lawrenceburg Gas Company became participating
employers effective January 1, 1997, and Cinergy Resources, Inc., Cinergy
Services, Inc., Cinergy Capital & Trading, Inc., and Cinergy Solutions,
Inc. became participating employers effective January 1, 1998.

 

The purpose of the Plan is to restore
benefits earned, but not available, to certain Employees because of certain
legal limits imposed on qualified retirement plan benefits by the Code.  The Plan is a nonqualified plan.

 

This document is a continuation of
and complete restatement of the Plan. 
The Plan, as effective January 1, 1998, is set forth in its entirety.

 

 

ARTICLE 1

DEFINITIONS

 

As used in the document, the
following words and phrases, when capitalized, will have the meanings set forth
below, unless a different meaning is plainly required by the context:

 

1.1                                 “Actuarial
Equivalent” means “Actuarial Equivalent” as defined in Cinergy’s Pension Plan.

 

 

1.2                                 “Affiliate”
means any employer that together with an Employer is under common control or a
member of an affiliated service group as determined under Code subsections
414(b), (c), (m) and (o).

 

1.3                                 “Beneficiary”
means, with respect to each Participant, the person or persons who are entitled
to receive benefits under the Plan after the Participant’s death.

 

1.4                                 “Board
of Directors” means the duly constituted board of directors of Cinergy on the
applicable date.

 

1.5                                 “Change
in Control” means “Change in Control” as defined in Cinergy’s Pension Plan.

 

1.6                                 “Cinergy”
means Cinergy Corp., a Delaware corporation, and any corporation that succeeds
to its business and adopts the Plan.

 

1.7                                 “Cinergy’s
Pension Plan” means the Code qualified pension plan known as the “Cinergy Corp.
Non-Union Employees’ Pension Plan,” as amended from time to time.

 

1.8                                 “Claimant”
means a person submitting a claim for benefits under the Plan.

 

1.9                                 “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and
interpretive rulings and regulations.

 

1.10                           “Committee”
means the benefits committee established pursuant to Article 8 (Administration)
to serve as administrator of the Plan.

 

1.11                           “Contingent
Annuitant” means, with respect to any Participant electing a contingent pension
option under Cinergy’s Pension Plan, the person designated by the Participant
to receive a contingent pension after the Participant’s death.

 

1.12                           “Employee”
means any person employed by an Employer.

 

1.13                           “Employer”
means Cinergy and any Affiliate which, with the consent of the Board of
Directors, elects to participate in the Plan pursuant to Section 15.1 (Adoption
of Plan) and any successor corporation or other organization or entity that
adopts the Plan pursuant to Article 16 (Continuance by a Successor).  If an Affiliate withdraws from participation
in the Plan pursuant to Section 15.2 (Withdrawal from Participation), that
Affiliate will cease to be an Employer.

 

1.14                           “Insolvent”
means, with respect to Cinergy, Cinergy being unable to pay its debts as they
are due, or Cinergy being subject to a pending proceeding as a debtor under the
United States Bankruptcy Code.

 

1.15                           “Maximum
Benefit” means the monthly equivalent of the maximum benefit permitted after
applying Code subsections 415(b) and (e) and Code paragraph 401(a)(17) payable
to a Participant under Cinergy’s Pension Plan.

 

2

 

1.16                           “Participant”
means any Employee who has met the eligibility requirements set forth in
Article 3 (Eligibility and Participation) and for whom benefits are to be
provided under the Plan.

 

1.17                           “Plan”
means the unfunded excess pension plan known as the “Cinergy Corp. Excess
Pension Plan,” as amended from time to time. 
Effective January 1, 1998, this document sets forth the Plan.

 

1.18                           “Plan
Year” means the calendar year.

 

1.19                           “Rabbi
Trust” means the grantor trust that Cinergy, in its sole discretion, may
establish pursuant to Article 10 (Funding Policy and Method) for the deposit of
funds to be used for the exclusive purpose of paying benefits accrued under the
Plan, subject to the claims of Cinergy’s general creditors in the event Cinergy
becomes Insolvent.

 

1.20                           “Retirement
Date” means, with respect to any Participant, the same date as the
Participant’s “normal retirement date,” “early retirement date,” or “severance
from service date” (as those terms are defined in Cinergy’s Pension Plan),
whichever is applicable to the Participant, under Cinergy’s Pension Plan.

 

1.21                           “Spouse”
means, with respect to any Participant, the Participant’s lawfully married
Spouse, if any, on the applicable date. 
The Plan will not recognize common law marriages or similar arrangements
unless required to do so by federal law.

 

1.22                           “Unrestricted
Benefit” means, with respect to any Participant, the monthly equivalent of the
benefit to which the Participant would have been entitled under Cinergy’s
Pension Plan, if that benefit had been determined without regard to the
limitations imposed on qualified retirement plan benefits under Code
subsections 415(b) and (e), and the limitation imposed on qualified retirement
plan compensation under Code paragraph 401(a)(17).

 

The uses of singular and masculine words are for
practical purposes only and will be deemed to include the plural and feminine,
respectively, unless the context plainly indicates a distinction.  Certain other definitions, as required,
appear in the following Articles of the Plan.

 

 

ARTICLE 2

EFFECTIVE DATE OF PLAN

 

The effective date of this restated
Plan is January 1, 1998, as to Cinergy and will be effective with respect to
any other Employer as of the date that Employer elects to participate in the
Plan pursuant to Article 15 (Participation by Other Employers).

 

This restated Plan applies only to
Employees who are credited with at least one “hour of service” (as defined in
Cinergy’s Pension Plan) on or after January 1, 1998.  This restated Plan will not affect the rights of former
Participants (and their Beneficiaries) who retired, died, or

 

3

 

otherwise terminated their employment with an Employer
prior to January 1, 1998.  The rights,
if any, of those former Participants (and their Beneficiaries), and the amount
of their benefits, if any, will be governed by the Plan’s provisions as the
same were in effect prior to January 1, 1998.

 

 

ARTICLE 3

ELIGIBILITY AND PARTICIPATION

 

Any Employee who is a participant in
Cinergy’s Pension Plan on or after January 1, 1986, and whose Unrestricted
Benefit would exceed his Maximum Benefit, is eligible to participate in the
Plan.

 

 

ARTICLE 4

BENEFITS

 

Upon a Participant’s Retirement Date,
the Participant will be entitled to a monthly benefit under this Plan that is
equal in amount to the difference between his Unrestricted Benefit and his
Maximum Benefit.  The benefit payable
under this Plan will be calculated after the Participant’s benefits payable
under Cinergy’s Pension Plan are calculated, but before benefits payable under
Cinergy’s supplemental executive retirement plan known as the “Cinergy Corp.
Supplemental Executive Retirement Plan,” as amended from time to time, are
calculated.

 

 

ARTICLE 5

SPOUSE’S BENEFIT

 

5.1                                 Determination of Spouse’s Benefit

 

Upon a Participant’s death, if his Spouse is entitled
to receive a Spouse’s benefit under Article 6 of Cinergy’s Pension Plan, his
Spouse will be entitled to receive an annual benefit under this Plan that is
equal to the amount the Participant would have received under Article 4
(Benefits).

 

5.2                                 Method of Payment of Spouse’s Benefit

 

Any excess pension benefits payable under this Article
to a Spouse will be payable in equal monthly installments, each installment
being equal to 1/12th of the annul amount as determined pursuant to this
Article.  If at the date of his death a
Participant had reached age 50, the first monthly installment will be payable
to the Participant’s Spouse on the first day of the calendar month coincident
with or following the date of the Participant’s death, if his Spouse is then
living.  If at the date of his death the
Participant had not reached age 50, the first monthly installment will be
payable to the Participant’s Spouse on the first day of the calendar month
coincident with or following the date the Participant would have reached age
50, had he survived until that date if his Spouse is then living.  In either event, subsequent monthly
installments will

 

4

 

be payable on the first day of
each month and will cease upon the payment of the installment due on the first
day of the calendar month in which the Spouse dies.

 

 

ARTICLE 6

MANNER OF PAYMENT

 

6.1                                 Form of Payment

 

The form of an excess pension payable under the Plan
to a Participant will be the same form in which the pension is payable to the
Participant under Article 7 of Cinergy’s Pension Plan.

 

6.2                                 Timing of Payment

 

The payment of a Participant’s excess pension benefits
under this Plan will begin as of the same date his benefits under Cinergy’s
Pension Plan begin.

 

6.3                                 Method of Payments

 

The method of payment of an excess pension payable to
a Participant under the Plan will be the same method of payment applicable to
the Participant under Article 8 of Cinergy’s Pension Plan.

 

6.4                                 Small Benefits

 

Notwithstanding any other provision of the Plan, where
the Actuarial Equivalent present value of a Participant’s or Spouse’s excess
pension payable under this Plan does not exceed $5,000, the Committee or its
designee will pay the excess pension in a single-sum cash payment equal to the
Actuarial Equivalent of the excess pension otherwise payable.

 

6.5                                 Facility of Payment

 

If any benefit under the Plan is payable
to a person whom the Committee knows is a minor or otherwise under legal
incapacity, the Committee or its designee may have the payment made to the
legal guardian of that person or to the person or organization as a court of
competent jurisdiction may direct.  To
the extent permitted by law, any payment under this Section will be a complete
discharge of any liability under the Plan to that person.

 

 

ARTICLE 7

NONALIENATION OF BENEFITS

 

The Plan will not in any manner be
liable for, or subject to, the debts or liabilities of any Participant,
Beneficiary, Contingent Annuitant, Spouse, or any other person entitled to any
Plan benefit.  No Payee may assign any
payment due him under the Plan.  No
pension or other

 

5

 

benefits at any time payable under the Plan will be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, attachment, garnishment, levy, execution, or other legal or equitable
process, or encumbrance of any kind. 
Any attempt to alienate, sell, transfer, assign, or otherwise encumber
any such benefit, whether presently or thereafter payable, will be void.

 

 

ARTICLE 8

ADMINISTRATION

 

8.1                                 Administrator

 

The Benefits Committee will be the administrator of
the Plan.  The Committee will consist of
the number of members, not fewer than three, that is specified from time to
time by the Board of Directors or its designee.  All members of the Committee will be employees or officers of an
Employer.  All members of the Committee
will serve without compensation.

 

8.2                                 Removal
and Replacement of Committee Members

 

The members of the Committee will
serve at the pleasure of the Board of Directors and may be removed by the Board
of Directors with or without cause.  Any
vacancy among the members will be filled by the Board of Directors or its
designee.

 

8.3                                 Disqualification
and Resignation

 

On the date when a Committee member
is neither an Employee nor an officer of an Employer, he will be disqualified
from membership on the Committee.  A
member of the Committee may resign by delivering his written resignation to any
other member of the Committee.  A
resignation will become effective on the date specified in the instrument of
resignation.

 

8.4                                 Chairperson,
Services, and Counsel

 

The members of the Committee will elect one of their
members as Chairperson and will elect a Secretary, who may be, but need not be,
one of the members of the Committee. 
Cinergy will provide the Committee, at Cinergy’s expense, with such
clerical, accounting, actuarial, and other services as may be reasonably
required by the Committee in carrying out its responsibilities.  The Committee may employ counsel, who may
be, but need not be, counsel to Cinergy.

 

8.5                                 Meetings

 

The Committee will hold meetings upon
such notice, at the places, and at the times as the Committee may from time to
time determine.

 

6

 

8.6                                 Quorum

 

A majority of the members of the
Committee at the time holding office will constitute a quorum for the
transaction of business.  All
resolutions and other action taken by the Committee at any meeting will be by
the vote of the majority of the members of the Committee present at the
meeting.

 

8.7                                 Action Without Meeting

 

Any decision, order, direction, or other
action made in writing signed by a majority of the members of the Committee at
the time holding office will constitute valid and effective action of the
Committee, whether or not the matter to which that decision, order, directions,
or other action pertains had already been acted upon at a duly called and held
meeting of the Committee.

 

8.8                                 Correction of Defects

 

The Committee may correct any defect
or supply any omission or reconcile any error or inconsistency in its previous
proceedings, decisions, orders, directions, or other actions in the manner and
to the extent as it deems advisable to carry out the Plan’s purposes.

 

8.9                                 Reliance Upon Legal Counsel

 

The members of the Committee, and
Cinergy and its officers and directors, will be entitled to rely upon all
opinions given by legal counsel selected by the Committee.

 

8.10                           Expenses

 

In the performance of its duties, the
Committee is authorized to incur reasonable expenses, including counsel fees,
which will be paid by Employers.

 

8.11                           Indemnification

 

Cinergy agrees to indemnify and hold
harmless each member of the Committee against any cost, expenses, or liability
(including any sum paid in settlement of any claim with the approval of the
Board of Directors) arising out of any act or omission to act as a member of
the Committee, except only acts and omissions representing willful misconduct,
fraud, or lack of good faith.

 

8.12                           Powers and Duties of Committee

 

Subject to the specific limitations stated in this
document, the Committee will have the following powers, duties, and
responsibilities.

 

(a)                                  to
carry out the Plan’s general administration;

 

7

 

(b)                                 to
cause to be prepared all forms necessary or appropriate for the Plan’s
administration;

 

(c)                                  to
keep appropriate books and records, including minutes of the Committee’s
meetings;

 

(d)                                 to
give directions as to the amounts to be disbursed to Participant and others
under the Plan’s provisions;

 

(e)                                  to
determine, with discretionary authority and consistent with the provisions of
this document, all questions of the eligibility, rights, and status of
Participants and others under the Plan;

 

(f)                                    to
exercise all other powers and duties specifically conferred upon the Committee
elsewhere in this document;

 

(g)                                 to
interpret, with discretionary authority, the provisions of the Plan and to
resolve, with discretionary authority, all disputed questions of Plan
interpretation and benefit eligibility; and

 

(h)                                 to
employ agents to assist it in performing its administrative duties.

 

The Committee will at all times make similar decisions
on similar questions involving similar circumstances.  Subject to the provisions of Article 9 (Benefit Claims
Procedures), all decisions of the Committee made in good faith on all matters
within the scope of its authority under the provisions of this document will be
final and binding upon all persons.

 

 

ARTICLE 9

BENEFIT CLAIMS PROCEDURES

 

Claims for benefits under the Plan
will be made in writing to the Committee or its designee.  If a claim for benefits is wholly or
partially denied, the Committee or its designee will notify the Claimant of the
claim’s denial within a reasonable period of time.  The Committee or its designee is authorized to develop more fully
the Plan’s benefit claims procedures by establishing from time to time various
rules and procedures.

 

Within 60 days after the Claimant’s
receipt of written notice of the claim’s denial, the Claimant, or his duly
authorized representative, may file a written request with the Committee requesting
a full and fair review of the denial of the Claimant’s claim for benefits.  In connection with the Claimant’s appeal of
the denial of his claim for benefits, the Claimant may review pertinent
documents in the Committee’s possession and may submit issues and comments in
writing.  The Committee will make a
decision on review promptly after receipt of the Claimant’s request for
review.  The decision on review will be
in writing and written in a manner calculated to be understood by the Claimant,
and will set forth the specific reason or reasons for the decision and will
contain a specific reference to the pertinent Plan provisions on which the

 

8

 

decision is based. 
If the decision on review is not furnished to the Claimant within 60
days of receipt of the request for review, the claim will be deemed denied on
review.

 

 

ARTICLE 10

FUNDING POLICY AND METHOD

 

The Plan will be totally unfunded, so
that the Employer’s obligation to pay benefits under the Plan is merely a
contractual duty to make payments when due under the Plan.  The Employer’s promise to pay benefits under
the Plan will be unsecured, will be paid out of the Employer’s general assets
and, except as provided in the following Paragraph, Cinergy will not set aside
or segregate assets for the purpose of paying benefits under the Plan.

 

Notwithstanding the preceding
paragraph, Cinergy, in its sole discretion, may establish a Rabbi Trust.  The Employer, in its sole discretion, may
make such contributions to the Rabbi Trust as the Committee determines are
appropriate to enable the Employer to pay benefits under the Plan.  Any Rabbi Trust established under this
Article will be created pursuant to a written trust document that substantially
conforms to the model form of rabbi trust agreement approved by the Internal
Revenue Service in Revenue Procedure 92-64 (as amended from time to time).

 

 

ARTICLE 11

CONTRIBUTIONS

 

No contributions to the Plan by
Participants will be required or permitted under the Plan.

 

During the continuance of the Plan
and for purposes of providing the benefits contemplated under the Plan, each
Employer intends to pay out of its general assets, from time to time, those
sums of money which the Committee deems sufficient to provide the benefits
under the Plan.

 

 

ARTICLE 12

MISCELLANEOUS

 

12.1                           No Enlargement of Employee Benefits

 

This Plan is strictly a voluntary undertaking on the
part of each Employer and will not be deemed to constitute a contract between
the Employer and any Employee or to be consideration for, or an inducement to,
or a condition of, the employment of any Employee.  Nothing contained in the Plan will be deemed to give any Employee
the right to be retained in the service of any Employer or to interfere with
the right of any Employer to discharge any Employee at any time.  No person will have any right to benefits
except to the extent provided in the Plan.

 

9

 

12.2                           Notice of Address

 

Each Participant, former Participant,
Beneficiary, Contingent Annuitant, and Spouse entitled to benefits under the
Plan must submit to the Committee or its designee his post office address and
each change of post office address.  Any
communication, statement or notice addressed to a person at his latest post
office address as filed with the Committee or its designee will, upon deposit
in the United States mail with postage prepaid, be binding upon that person for
all Plan purposes, and the Committee will not be obligated to search for, or to
ascertain the whereabouts of, any person, except as otherwise required by law.

 

12.3                           Data

 

Participants, former Participants,
Beneficiaries, Contingent Annuitants, and Spouses must furnish to the Committee
or its designee any documents, evidence, or information that the Committee
considers necessary or desirable for the purpose of administering the Plan, or
to protect the Committee; and it will be a condition of the Plan that each
person must furnish this information promptly and sign required documents before
any benefits become payable under the Plan.

 

12.4                           No Individual
Liability

 

It is the express purpose and
intention of the Plan that no individual liability whatever will attach to, or
be incurred by, the shareholders, officers, or members of the board of directors
of any Employer, or the Committee or its members, or any fiduciary designated
pursuant to Section 8.12 (Powers and Duties of Committee), or any
representative appointed by Cinergy, under or by reason of any of the terms or
conditions of the Plan.

 

12.5                           Governing Laws

 

The Plan will be construed and
administered according to the internal laws of the State of Ohio to the extent
that those laws are not preempted by federal law.

 

12.6                           Severability

 

If any part of the Plan is adjudged
by a court of competent jurisdiction to be contrary to the laws governing the
Plan, then the Plan will, in all other respects, be and remain legally
effective and binding to the full extent permissible under the law.

 

12.7                           Interpretation and Regulation of Plan

 

Cinergy, by action of the Committee,
reserves the right to interpret and regulate the Plan, by exercise of
discretionary authority, and its interpretation and regulations will be legally
effective and binding on all parties concerned.

 

10

 

12.8                           Communication by Participants

 

All communications by Participants,
former Participants and other concerned parties concerning the Plan must be in
writing and directed to Cinergy’s General Manager, Benefits, 1000 East Main
Street, Plainfield, Indiana 46168.

 

12.9                           Headings

 

The headings of Articles, Sections,
Subsections, and Paragraphs, or other parts of the Plan are for convenience of
references only and do not define, limit, construe, or otherwise affect the
contents of this document.

 

 

ARTICLE 13

CONTINUED APPROVAL OF CINERGY’S
PENSION PLAN

 

The Plan, as set forth in this
document, is intended to provide retirement benefits supplemental to those
provided under Cinergy’s Pension Plan. 
The Plan’s implementation and continuance are expressly conditioned upon
the absence of any disqualifying effects of implementation and continuance upon
Cinergy’s Pension Plan under the Code. 
Any modification, amendment, or termination of the Plan may be made,
retroactive or otherwise, as necessary or appropriate to maintain the
qualification of Cinergy’s Pension Plan under the Code or to otherwise cause
Cinergy’s Pension Plan to comply with any applicable requirements of the
Employee Retirement Income Security Act of 1974, as amended from time to time.

 

 

ARTICLE 14

AMENDMENT AND TERMINATION

 

14.1                           Authority to Amend

 

Cinergy, by resolution of the Board
of Directors or by any person or persons duly authorized by resolution by
Cinergy’s Board of Directors, will have the right, authority, and power to alter,
amend, modify, revoke, or terminate the Plan, and Cinergy, by resolution of the
Board of Directors or by any person or persons duly authorized by resolution by
the Board of Directors, will also have the right, authority, and power to
terminate the Plan and to discontinue or suspend the payment of benefits under
the Plan.

 

14.2                           Merger, 
Consolidation, or Change in Control

 

If Cinergy should be reorganized by
merger, consolidation, transfer of assets, or otherwise, so that a corporation,
partnership, or person shall succeed to all or substantially all of Cinergy’s
business, or a Change in Control occurs, then the obligations and
responsibilities of Cinergy under the Plan will be assumed by any successor,
acquiring corporation, or controlling entity, and all of the rights,
privileges, and benefits of the Participants under the Plan will continue.  Notwithstanding the provisions of Section
14.1 (Authority to Amend), the provisions

 

11

 

of this Section may not be amended by an amendment to
the Plan effective within three years of the occurrence of any of the events
described in the preceding sentence.

 

 

ARTICLE 15

PARTICIPATION BY OTHER EMPLOYERS

 

15.1                           Adoption of the Plan

 

With Cinergy’s consent, any Affiliate
may become a participating Employer under the Plan by (a) taking any action
necessary to adopt the Plan, (b) filing with Cinergy a duly certified copy of
the Plan as adopted by the Affiliate, and (c) executing and delivering any
documents and taking any other action as may be necessary or desirable to put
the Plan into effect with respect to that corporation or entity.

 

15.2                           Withdrawal from Participation

 

Any Employer, may with Cinergy’s
consent, withdraw from participation in the Plan at any time by filing with
Cinergy a duly certified copy of a resolution of its board of directors to that
effect and giving notice of its intended withdrawal to Cinergy prior to the
effective date of withdrawal.

 

15.3                           Cinergy as Agent for Employers

 

Each Affiliate that becomes a
participating Employer pursuant to Section 15.1 (Adoption of the Plan) or
Article 16 (Continuance by a Successor) by so doing will be deemed to have
appointed Cinergy its agent to exercise on its behalf all of the powers and
authorities conferred upon Cinergy by the terms of the Plan, including, but not
limited to, the power to amend and terminate the Plan.  Each Employer must, from time to time, upon
Cinergy’s request, furnish to Cinergy any data and information as Cinergy
requires in the performance of its duties.

 

 

ARTICLE 16

CONTINUANCE BY A SUCCESSOR

 

If Cinergy or any other Employee is
reorganized by way of merger, consolidation, transfer of assets, or otherwise,
so that a corporation, partnership, or person other than an Employer succeeds
to all or substantially all of an Employer’s business, the successor may be
substituted for the Employer under the Plan by adopting the Plan.  Benefit payments by the Employer will be
automatically suspended from the effective date of any reorganization until the
date upon which the substitution of the successor corporation for the Employer
under the Plan becomes effective.  If,
within 90 days following the effective date of any reorganization, the
successor has not elected to become a party to the Plan, or if the Employer
adopts a plan of complete liquidation other than in connection with a
reorganization, the Plan will be automatically terminated with respect to
employees of that Employer as of the close of business

 

12

 

on the 90th day following the effective date of the
reorganization or as of the close of business on the date of adoption of the
plan of complete liquidation, as the case may be.

 

IN WITNESS WHEREOF, Cinergy Corp. has
caused this Plan document to be executed and approved by its duly authorized
officers, effective as of January 1, 1998.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  BY:

  	
  /s/ 
  Madeleine W. Ludlow

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Madeleine W. Ludlow

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Dated:

  	
  January 1, 1998

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPROVED:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/  Jerome
  A. Vennemann

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jerome A. Vennemann

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Acting General Counsel and

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assistant Corporate Secretary

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  January 1, 1998

  	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

13

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