Document:

Exhibit 10.1

 

CONSULTING AGREEMENT

 

This Consulting Agreement (the “Agreement”),
which is effective as of this           
day of March 2006, is entered into by and between Michael J. Cyrus (the “Executive”)
and Cinergy Corp. and its subsidiaries and affiliates (collectively, “Cinergy”),
with the mutual exchange of promises as consideration (collectively, the “Parties”).

 

Recitals

 

A.                                   WHEREAS, the Parties have agreed to the termination of
the Executive’s employment following the consummation of the merger contemplated
by the Agreement and Plan of Merger by and among Duke Energy Corporation,
Cinergy Corp., Deer Holding Corp., Deer Acquisition Corp. and Cougar
Acquisition Corp., dated as of May 8, 2005, as amended; and

 

B.                                     WHEREAS, Cinergy would like to engage the Executive to
provide certain consulting services to the publicly traded entity surviving the
Merger and/or its subsidiaries and affiliates as well as any successors thereto
(collectively, “Duke”).

 

C.                                     NOW, THEREFORE, Cinergy and the Executive enter into the
following Agreement:

 

Agreement

 

1.                                       Consulting
Arrangement.  The Executive agrees to
serve as a consultant to Duke for the period beginning on the date the
Executive’s employment is terminated and ending on December 31, 2006 (the “Consulting
Period”).  The consulting services to be
provided by the Executive during the Consulting Period will consist of
consultation with, and advice to, the officers and managerial employees of
Duke, as requested by Paul H. Barry (or his/her successor), on matters relating
to Cinergy’s business affairs about which the Executive has historical
knowledge and experience.  When requested
by Duke, the Executive will perform the consulting services at reasonable
times, as determined by mutual agreement between Duke and the Executive;
provided, however, that in no event will the Executive be required, pursuant to
this Agreement, to provide more than 80 hours of consulting services to Duke in
any calendar month without his/her consent. 
With respect to the Consulting Period, the Executive will receive (i) a
$151,000 retainer for consulting services in a lump sum as soon as reasonably
practicable after the later of the date the Executive’s employment is
terminated or the date this Agreement becomes effective pursuant to Section 4
hereof, and (ii) a monthly consulting fee of $27,775 for consulting
services performed during such period. 
If the Executive devotes more than 640 hours during the Consulting
Period to the performance of consulting services pursuant to this Agreement,
then the Company shall pay to the Executive an additional consulting fee at a
rate of $320 per hour for each hour of consulting services in excess of 640
hours.  All of the consulting services to
be provided by the Executive will be performed as an independent contractor,
and the

 

1

 

Executive
will not have any authority to act as an agent or representative of Duke,
except to the extent expressly authorized in writing by Duke.  The Executive will perform his/her consulting
services to the best of his/her abilities. 
The Executive will be reimbursed for all reasonable expenses authorized
by Duke and incurred by the Executive in connection with the provision of
consulting services pursuant to this Agreement. 
Nothing in this Agreement will prohibit the Executive from seeking or
accepting other employment, engaging in any other consulting services, or
participating in any other endeavor for profit, as he/she deems appropriate;
provided, however, that in so doing, he/she does not breach any of his/her
other obligations under this Agreement; further, provided, however, that in the
event the Executive becomes employed by another employer prior to the
expiration of the Consulting Period, Duke, in its sole discretion, may terminate
this Agreement.

 

2.                                       Nondisclosure
of Confidential Information.  The
Executive acknowledges that the information, observations and data obtained by
him/her during the Consulting Period concerning the business or affairs of Duke
or any predecessor thereof (unless and except to the extent the foregoing
become generally known to and available for use by the public other than as a
result of the Executive’s acts or omissions to act) (hereinafter defined as “Confidential
Information”) are the property of Duke and he/she is required to hold in a
fiduciary capacity all Confidential Information obtained by him/her during the
Consulting Period for the benefit of Duke. 
The Executive’s obligations under this Agreement are in addition to, and
not in limitation of or preemption of, all other obligations of confidentiality
which the Executive may have to Duke or its predecessors under general legal or
equitable principles, and federal, state or local law.

 

3.                                       Governing
Law.  This Agreement shall be
interpreted, enforced and governed under the laws of the State of Ohio, without
regard to any applicable state’s choice of law provisions.

 

4.                                       Effective
Date.  The Parties acknowledge and agree
that this Agreement shall not become effective unless and until it is approved
by the Compensation Committee of the Board of Directors of Cinergy Corp.  Notwithstanding anything in this Agreement to
the contrary, this Agreement shall be null and void and of no force or effect
in the event the Executive does not execute any waiver and release the
Executive may be required to execute (a) in connection with the agreement
by and between Executive and Cinergy dated December 27, 2005 regarding the
acceleration of certain payments, and/or (b) in order to receive severance
benefits under the Employment Agreement by and between the Executive and
Cinergy dated September 12, 2002, as amended.

 

2

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed,
effective as of the date first written above.

 

 

	
  CINERGY

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  James E. Rogers

  	
  Michael J. Cyrus

  
	
   

  	
  Chief Executive Officer of
  Cinergy

  	
   

  
	
   

  	
  Corp. and Cinergy Services, Inc.

  	
   

  
					

 

3Exhibit 10.2

 

Summary of Amendments to
Employment Agreements

 

On March 31, 2006, Cinergy Corp. eliminated the requirement that,
with limited exception, its executive officers and directors retain shares of
stock acquired pursuant to the exercise of stock options until 90 days after
their termination from employment or other service with Cinergy.  The elimination of this requirement was
effective April 3, 2006, and results in the elimination of Section 4g
from the employment agreements of Messrs. James E. Rogers, Michael J.
Cyrus, James L. Turner and Marc E. Manly and Ms. Lynn J. Good.  Prior to its elimination, Section 4g of
the employment agreement of each individual listed above provided as follows:

 

The Executive acknowledges and agrees
that [he/she] shall not sell or otherwise dispose of any shares of Company
stock acquired pursuant to the exercise of a stock option, other than shares
sold in order to pay an option exercise price or the related tax withholding
obligation, until 90 days after the Date of Termination.  Notwithstanding the foregoing, Cinergy, in
its sole discretion, may waive the restrictions contained in the previous
sentence.Exhibit 10.3

 

AGREEMENT

 

This AGREEMENT is made and entered into as of the 31st
day of March, 2006, by and between Cinergy Corp. (“Cinergy”) and James E.
Rogers (the “Executive”) (collectively, the “Parties”).

 

Recitals

 

The Executive is currently serving as Chairman of the
Board, President and Chief Executive Officer of Cinergy.  In connection with the Agreement and Plan of
Merger by and among Cinergy, Duke Energy Corporation and their respective
affiliates, dated May 8, 2005, Cinergy, Duke Energy Corporation, Deer
Holding Corp. and the Executive entered into an Employment Agreement Term
Sheet, dated May 8, 2005 (the “Term Sheet”), that provides that the
Executive shall serve as the Chief Executive Officer and President of the
holding company (“Duke Energy”) formed upon the consummation of the merger (the
“Merger”) by and among Cinergy and Duke Energy Corporation.  Section 2(d)(iii) of the Term Sheet
provides that the present value of the Executive’s supplemental executive
retirement benefit shall be quantified immediately prior to the closing of the
Merger and shall be deferred with market-based earnings to be credited
thereon.  In order to provide an
additional incentive for the Executive to remain employed following the Merger,
Cinergy and the Executive have agreed to remove the “change in control”
accelerated vesting provisions in the Executive’s existing stock options,
increase the present value of the Executive’s supplemental executive retirement
benefit and subject a portion of such benefit to a vesting schedule. The
Parties are entering into this Agreement in connection with Section 2(d)(iii) of
the Term Sheet.

 

Agreement

 

In consideration of the mutual promises and
agreements set forth below, the Parties agree as follows.

 

1.                                       Immediately prior to the consummation of the
Merger, Cinergy shall credit, to an account (the “Account”) established on
behalf of the Executive under the Cinergy Corp. 401(k) Excess Plan (“Plan”), an
amount equal to $42,621,506, subject to the vesting schedule set forth in Section 3
herein.   Following the date on which
such amount is credited to the Executive’s Account, such Account shall be
credited with earnings and losses in accordance with the terms and conditions
of the Plan.  The vested portion of such
amount shall be distributed in the form, and on the date(s), elected by the
Executive in accordance with the terms and conditions of the Plan.  The Executive’s election regarding the form
and date(s) of the distribution of his 
Account shall be made in 2006 in accordance with the transition relief
provided under Q&A 19(c) of IRS Notice 2005-1 (and the Proposed
Treasury Regulations under Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”)) such that such election

 

1

 

does
not cause any amount credited to the Executive’s Account to be subject to tax
(prior to actual receipt) under Section 409A of the Code.

 

2.                                       The amount specified in Section 1 of
this Agreement has been calculated based on the assumption that the
consummation of the Merger will occur on April 1, 2006.  In the event that the consummation of the
Merger occurs on a date other than April 1, 2006, the Chairman of the
Compensation Committee of the Board of Directors of Cinergy shall adjust the
amount to be credited to the Executive’s account under the Plan using the
actuarial assumptions contained in Section 1.5(c) of the Cinergy
Corp. Non-Union Employees’ Pension Plan for purposes of determining lump sum
amounts.

 

3.                                       The Executive shall at all times have a
nonforfeitable interest in $37,421,506 of the amount credited to his Account hereunder
(and related earnings), and the remaining $5,200,000 of the amount credited to his
Account hereunder (and related earnings) shall vest, subject to the Executive’s
continued employment with Duke Energy and its affiliates, upon the earliest to
occur of:  (i) the second
anniversary of the closing of the Merger, (ii) the date of the Executive’s
death, (iii) the date of the Executive’s disability due to physical or
mental illness or injury that precludes him from performing any job for which
he is qualified and able to perform based upon his education, training or
experience, (iv) the involuntary termination of Executive’s employment
with Duke Energy and its affiliates without “Cause”, or (v) the Executive’s
voluntary termination of employment with Duke Energy and its affiliates for “Good
Reason” (as those terms are defined in the Executive’s Employment Agreement
with Duke Energy Corporation dated as of April 4, 2006).

 

4.                                       The Executive acknowledges and agrees that,
immediately after Cinergy credits the amount specified in this Agreement to the
Executive’s Account under the Plan, the Executive shall have no further right
to a benefit under the Cinergy Corp. Excess Pension Plan, the Cinergy Corp.
Supplemental Executive Retirement Plan and Section 3b(ii) of the
Executive’s Employment Agreement with Cinergy dated as of February 4,
2004.

 

5.                                       The amount credited to the Executive’s
Account under the Plan will be subject to certain taxes at the time of the
credit, including taxes under the Federal Insurance Contributions Act (“FICA”).  To the extent permitted under Section 409A
of the Code, the Parties agree that the amount credited to the Executive’s
Account under the Plan shall be reduced by the amount (including applicable
taxes thereon) of the Executive’s tax obligation as described in the preceding
sentence.  To the extent that such
reduction is not permitted under Section 409A of the Code, the Executive
shall pay the resulting tax or make other provisions that are satisfactory to
Cinergy for payment thereof.

 

6.                                       The Parties hereby amend the stock options
granted to the Executive effective as of January 1, 2004 and January 1,
2005 to remove the “change in control” accelerated vesting provisions in such
options, and to provide that such options shall vest in accordance with their
normal vesting schedule or, if earlier, upon the earliest to occur of (i) the
date of the Executive’s death, (ii) the date of the Executive’s disability

 

2

 

due
to physical or mental illness or injury that precludes him from performing any
job for which he is qualified and able to perform based upon his education,
training or experience, (iii) the involuntary termination of Executive’s
employment with Duke Energy and its affiliates without “Cause” or (iv) the
Executive’s voluntary termination of employment with Duke Energy and its
affiliates for “Good Reason” (as those terms are defined in the Executive’s
Employment Agreement with Duke Energy Corporation dated as of April 4,
2006).

 

7.                                       The Parties intend that this Agreement (and
the Plan) comply with the provisions of Section 409A of the Code. This
Agreement shall be construed, administered, and governed in a manner consistent
with this intent.  Any provision that
would cause any amount payable or benefit provided in connection with this
Agreement to be includable in the gross income of the Executive under Code Section 409A
shall have no force and effect unless and until amended to cause such amount or
benefit to not be so includable (which amendment shall be negotiated in good
faith by the Parties and shall maintain, to the maximum extent practicable, the
original intent of the applicable provision and the present value of the
Executive’s benefits under the Account without violating the requirements of Section 409A
of the Code).

 

8.                                       This Agreement shall inure to the benefit of
and be binding upon Cinergy and its successors and assigns.  This Agreement may not be amended except by
an agreement in writing signed by the party against whom enforcement of the
amendment is sought.  Cinergy and the
Executive agree that Cinergy Corp. shall be authorized to act for Cinergy and
its affiliates, including Cinergy Services, Inc., with respect to all
aspects pertaining to the administration and interpretation of this Agreement.

 

IN WITNESS WHEREOF, the Executive and the Company have
caused this Agreement to be executed as of the 31st day of March, 2006.

 

 

	
   

  	
  CINERGY CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Michael G. Browning

  
	
   

  	
   

  	
  Chairman, Compensation Committee

  
	
   

  	
   

  	
  of the Board of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James E. Rogers

  
					

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]