Document:

EXHIBIT
10.4

EXECUTION COPY

SUPPLEMENTAL
RETIREMENT AGREEMENT

THIS SUPPLEMENTAL RETIREMENT
AGREEMENT (this “Agreement”), is entered by and between MOTHERS WORK,
INC., a Delaware Corporation (the “Company”), and DAN W. MATTHIAS
(the “Executive”);

WHEREAS, the Executive
is presently employed by the Company in a key executive position and possesses
substantial talent, ability and unique business experience which has been and
will continue to be of great value to the Company; and

WHEREAS, in
consideration for the Executive’s past contributions to the Company and his continued
service with the Company, the Company desires to provide the Executive with
supplemental retirement benefits upon his cessation of service with the
Company;

NOW, THEREFORE,
intending to be legally bound, the parties agree as follows:

1.            DEFINITIONS.  For purposes of this Agreement, the
following terms will have the meanings defined below:

(a)           “Actuarial Present Value” means, for any stream of
payments as of any date, the actuarial present value of those payments on the
date specified, determined using the 1994 Group Annuity Unisex Mortality table
and assuming a 6% rate of interest.

(b)           “Benefit” means the benefit payable to the
Executive pursuant to the terms of this Agreement.

(c)           “Board” means the Board of Directors of the
Company, as constituted from time to time; provided,
however, that if the Board appoints a committee to perform some or
all of the Board’s administrative functions hereunder, references to the “Board”
will be deemed to also refer to that committee in connection with matters
performed by that committee.

(d)           “Cause” will have the same meaning as is set forth
in the Employment Agreement.

(e)           “Change in Control” will have the same meaning as
is set forth in the Employment Agreement.

(f)            “Code” means the Internal Revenue Code of 1986, as
amended, and any successor thereto.

(g)           “Deemed Final Pay” means $531,803 (the “Base
Salary”), increased by 3% per year on each October 1st that occurs after
the Effective Date and before the Executive ceases to be employed by the
Company, provided, however, that no
increases to Deemed Final Pay will be made on or after October 1, 2012.

(h)           “Effective Date” means the date this Agreement is
fully executed by both parties hereto.

(i)            “Employment Agreement” means that certain Second Amended
and Restated Employment Agreement between the Executive and the Company dated
March 1, 2007, as amended from time to time.

(j)            “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended.

(k)           “Good Reason” will have the same meaning as is set
forth in the Employment Agreement.

(l)            “Plan
Administrator” means the Board.

(m)          “Separation from Service” means a separation from
service as defined in Prop. Treas. Reg. § 1.409A-1(h).

(n)           “Vested
Percentage” means as of any given date, that portion of the Benefit that is
then vested, as determined in accordance with Section 2 hereof.

2.            VESTING OF BENEFIT.

(a)           Vesting
Based on Continued Service.  Subject
to the remainder of this Section 2, the Vested Percentage will be determined as
follows:

(i)            The
Vested Percentage will be 33a% on the Effective Date;

(ii)           Subject
to Section 2(b), the Vested Percentage will be increased by 15% on each
September 30th occurring after the Effective Date, provided the Executive has
remained in continuous employment with the Company through that date; and

(iii)          In
no event will the Vested Percentage exceed 100%.

(b)           Part-Time Service. 
If the Executive elects “part-time” status in accordance with Section 2.2
of the Employment Agreement, the reference to “15%” in Section 2(a)(ii) will thereafter
be replaced with a reference to “7.5%.”

(c)           Accelerated Vesting.  The Vested Percentage will be 100% if, following
a Change in Control, the Executive’s employment by the Company ceases due to
the Executive’s resignation with Good Reason or termination by the Company
without Cause.

3.            AMOUNT, FORM
AND TIMING OF BENEFIT.

(a)           Form of Benefit. 
The Benefit will be paid in cash, in a single lump sum and will be
subject to applicable tax withholding.

(b)           Amount of Benefit. 
The amount of the Benefit will be equal to: (i) the Actuarial Present
Value, determined as of the date of Executive’s Separation from Service, of an

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immediately commencing single life annuity with
annual payments equal to 60% of the Executive’s Deemed Final Pay, multiplied by
(ii) the Vested Percentage.

(c)           Time Of Payment.

(i)            Subject to Section 2(c)(ii), the
Benefit will be paid within 60 days following the Executive’s Separation from
Service.

(ii)           If the
payment of the Benefit is subject to the requirements of Prop. Treas. Reg. §
1.409A-3(g)(2) (or any successor provision), the Benefit will be paid on
the first day of the seventh month following the Executive’s Separation from
Service (or, if earlier, the date of the Executive’s death).

(d)           One Payment Only. 
Only one Benefit will be paid hereunder and payment of that Benefit will
constitute a full discharge of all the Company’s liabilities hereunder.  For avoidance of doubt, if a Benefit is paid
before the amount of the Benefit is maximized (e.g., because the Vested
Percentage is then less than 100% or because Deemed Final Pay has not yet been
maximized), a subsequent return to employment will not create a right to any
additional or incremental payment hereunder.

(e)           Payment to Beneficiary.  By delivery of notice in writing to the
Company, the Executive may designate a beneficiary to receive his Benefit in
the event of the Executive’s death (i) while still employed, or (ii) after a
Separation from Service but before payment of the Benefit.  In the event of the Executive’s death while
still employed, the amount of the Benefit will be determined as though the
Executive had experienced a Separation from Service immediately prior to his
death.  Any beneficiary designation that
is duly made will supersede all prior designations.  If no designation is duly made, the Executive’s
beneficiary will be his spouse or, if the Executive is unmarried at the time of
his death, the Executive’s estate.

4.            FUNDING.

(a)           Benefits payable under this Agreement will be “unfunded,”
as that term is used in Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of
ERISA with respect to unfunded plans maintained primarily for the purpose of
providing deferred compensation to a select group of management or highly
compensated employees.  Accordingly, except
as otherwise provided below in Section 4(b), the Company will not be required
to segregate or earmark any of its assets for the benefit of the Executive, and
the Executive will have only a contractual right against the Company for
benefits hereunder.

(b)           The
Company will establish a grantor trust, the assets of which will be used
exclusively to provide benefits to the Executive pursuant to this Agreement
(subject, however, to the claims of the general creditors of the Company).  Unless otherwise agreed between the Company
and Executive, the trustee of that grantor trust will be Wachovia Bank,
National Association.  An initial deposit
will be made to that trust within 60 days following the Effective Date.  Subsequent deposits will be made within 60
days following the end of each fiscal year of the Company ending after the
Effective Date and before the Benefit is paid. 
Deposits will be made in cash or marketable securities and will in each
case be an amount sufficient, on an actuarial basis, to cause the total assets
of the trust immediately following the

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deposit to reasonably approximate the Company’s
then current obligation hereunder if the Executive then experienced a
Separation from Service.  After the
Benefit has been paid, any amounts remaining in the trust will be distributed
to the Company.

(c)           The
Company will exercise commercially reasonable efforts to cause the grantor
trust and its assets described in the preceding paragraph to be excluded from
any security interest granted by the Company to secure its debts, including
under the credit agreements it is currently negotiating.  To the extent the Company is successful in
excluding grantor trust assets from security interests granted under such
credit agreements, but subsequently negotiates additional or replacement credit
agreements, the Company agrees that it will (i) not agree in any such
additional or replacement credit agreement to grant any security interest to
any additional or replacement lender in any amounts held in the trust and
excluded from any then existing lender’s security interests at the time the
Company enters into such additional or replacement credit agreement, and (ii)
use commercially reasonable efforts to exclude from any additional or replacement
lender’s security interests any assets to be contributed to the trust after the
date of such additional or replacement credit agreement.  Nothing in this paragraph will be deemed to
exclude the assets of the grantor trust from the reach of the Company’s general
creditors in the event of insolvency or bankruptcy.

5.            ADMINISTRATION.

The Board, as Plan Administrator, will have
full power, authority and discretion to (i) supply omissions, reconcile
inconsistencies and to otherwise interpret this Agreement, (ii) prescribe,
amend and rescind any rules, forms and procedures as it deems necessary or
appropriate for the proper administration of this Agreement, and (iii) make other
determinations and take other such actions as it deems necessary or advisable
in carrying out its duties under this Agreement.  All action taken by the Plan Administrator
arising out of, or in connection with, the administration of this Agreement or
any rules adopted hereunder will be final, conclusive and binding upon the
Company and the Executive.

6.            CLAIMS PROCEDURE.

(a)        
Pursuant to the requirements of ERISA, claims for benefits hereunder will be
handled in accordance with 29 CFR §2560.503-1, as such regulations of the
United States Department of Labor may from time to time be amended, as follows:

(i)            In
General.  If the Executive believes
that he is being denied any rights or benefits under this Agreement, he may
file a claim in writing with the Plan Administrator.  If any such claim is wholly or partially
denied, the Plan Administrator will notify the Executive of its decision in
writing.  Such notification will contain
(1) specific reasons for the denial, (2) specific reference to pertinent
provisions of this Agreement, (3) a description of any additional material or
information necessary for the Executive to perfect such claim and an
explanation of why such material or information is necessary, and (4)
information as to the steps to be taken if the Executive wishes to submit a
request for review.  Such notification
will be given within 90 days after the claim is received by the Plan
Administrator (or within 180 days, if special circumstances require an
extension of time for processing the claim and if written notice of such
extension and circumstances is given to the Executive within the initial 90-day
period).

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If such notification is not given within the
specified period, the claim will be deemed denied and the Executive may then
appeal the denial of his claim.

(ii)           Appeals.  Within 60 days after the date on which the
Executive receives a written notice of a denied claim (or, if applicable,
within 60 days after the date on which denial is deemed to have occurred) the
Executive (or his duly authorized representative) may (1) file a written
request with the Plan Administrator for a review of his denied claim and of
pertinent documents and (ii) submit written issues and comments to the Plan
Administrator.  The Plan Administrator
will notify the Executive of its decision in writing.  Such notification will be written in a manner
calculated to be understood by the Executive and will contain specific reasons
for the decision as well as specific references to pertinent provisions of this
Agreement.  The decision on review will
be made within 60 days after the request for review is received by the Plan
Administrator (or within 120 days, if special circumstances, such as an
election by the Plan Administrator to hold a hearing, require an extension of
time for processing the request, and if written notice of such extension and
circumstances is given to the Executive within the initial 60-day period).  If the decision on review is not made within
such period, the claim will be considered denied.

(b)           Mediation.  If the Executive is dissatisfied with the
Plan Administrator’s decision upon appeal, the Executive agrees that he will
make a good faith attempt to resolve his claim by submitting the matter to
mediation in Philadelphia, Pennsylvania before resorting to any other
proceeding or forum.  The parties will
submit the matter to mediation within 5 business days of the determination that
there is a dispute and will choose a mediator within 5 business days following
such submission, provided that if the parties cannot agree on a mediator, the
mediator will be selected by the American Arbitration Association.  Within 30 days after the selection of the
mediator, the parties and their respective attorneys will meet with the
mediator for two mediation sessions of at least two hours each.  If the claim or dispute cannot be settled
during such mediation sessions (or a mutually agreed continuation of those
sessions), either of the parties may give the mediator and the other party
written notice declaring the end of the mediation process.  All discussions connected with this mediation
provision will be confidential and treated as compromise and settlement
discussions.  Accordingly, nothing
disclosed in such discussions may be used for any purpose in any later
proceeding.

7.            MISCELLANEOUS PROVISIONS.

(a)           Entire Agreement. 
This Agreement represents the entire agreement between the parties
hereto relating to the subject matter hereof, and merges and supersedes all
prior and contemporaneous discussions, agreements and understandings of every
nature regarding that subject matter.

(b)           Employment Status. This Agreement does not
constitute a contract of employment or impose upon the Executive any obligation
to remain as an employee, nor does it impose on the Company any obligation (i)
to retain the Executive as an employee or (ii) to limit in any respect the
right of the Company to discharge the Executive at any time for any reason.  For avoidance of doubt, service as a director
will not, itself, constitute employment by the Company for purposes of this
Agreement.

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(c)           Non-alienation. 
Except as expressly provided herein with respect to payment to a
designated beneficiary in the event of the Executive’s premature death, the
rights and interests of the Executive under this Agreement will not be subject
in any manner to anticipation, alienation, sale, transfer, assignment, pledge
or encumbrance by the Executive or any person claiming under or through the
Executive, nor will they be subject to the debts, contracts, liabilities or
torts of the Executive or anyone else prior to payment.

(d)           Notices. Any notices provided hereunder must be in
writing, and such notices or any other written communication will be deemed
effective upon the earlier of personal delivery (including personal delivery by
facsimile) or the third day after mailing by first class mail, to the Company
at its primary office location and to the Executive at the Executive’s address
as listed in the Company’s payroll records.  Any payments made by the Company to the Executive
under the terms of this Agreement will be delivered to the Executive either in
person or at the address as listed in the Company’s payroll records.  

(e)           Legal Construction. All questions concerning the
construction, validity and interpretation of this Agreement will be governed by
the laws of the Commonwealth of Pennsylvania, without regard to such state’s
conflict of laws rules, to the extent that such laws are not preempted by
ERISA.

(f)            Amendment.  This
Agreement may only be amended by a writing signed by each of the parties
hereto.

(g)           Counterparts.  This Agreement may be executed in separate
counterparts, any one of which need not contain signatures of more than one
party, but all of which taken together will constitute one and the same
Agreement.

IN WITNESS
WHEREOF, the parties hereto have executed this Agreement on the respective
date(s) below indicated.

MOTHERS WORK, INC.

	
  By:

  	
  /s/ Edward M. Krell

  	
   

  	
  Date:

  	
   

  	
  March 2, 2007

  	
   

  
	
  Name:

  	
  Edward M. Krell

  
	
  Title:

  	
  Executive Vice President - Chief Financial Officer

  

 

EXECUTIVE

	
  By:

  	
  /s/ Dan W. Matthias

  	
   

  	
  Date:

  	
   

  	
  March 2, 2007

  	
   

  
	
   

  	
  Dan W. Matthias

  

 

 6Exhibit 10.1

 

PHANTOM
STOCK AWARD AGREEMENT

This Phantom Stock  Award Agreement (the “Agreement”) has been made as of March 2, 2007, (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 the second anniversary of
the commencement of such leave of absence; unless the Committee or delegatee
determines otherwise, in the event Grantee does not return to active service
from such leave of absence prior to the second anniversary of the commencement
of such leave of absence, 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 being retained during the Restricted Period in a capacity as
an attorney licensed to practice law, or to restrict Grantee 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 as soon as practicable following any 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.  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 30 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 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 (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                       , 2007, 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 (ST05F),
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                                   , 2007.

 

	
  

  	
   

  
	
   

  	
  Grantee’s Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (print name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (social security number)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (address)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]