Document:

Second Amendment to Reorganiztion Agreement

 Exhibit 10.4.2 
  
 SECOND AMENDMENT TO REORGANIZATION AGREEMENT 
  
 This Second Amendment to Reorganization Agreement (“Amendment”) is entered into as of July 11, 2005, by and among
ConocoPhillips, Duke Capital LLC and Duke Energy Field Services, LLC. 
  
 Recitals 
  
 ConocoPhillips, Duke Capital LLC and
Duke Energy Field Services, LLC are parties to a Reorganization Agreement dated May 26, 2005 (as amended, the “Agreement”) Any capitalized term used but not defined herein shall have the meaning ascribed to such term in the Agreement.

  
 The Empress System was damaged by a windstorm that struck
parts of the Empress System on June 21, 2005. As a result of such damage, the Parties desire to revise the Empress Target Closing Date in accordance with the terms of this Amendment and to enter into the agreements referenced in the following
provisions of this Amendment. 
  
 NOW THEREFORE, in and for the
terms and provisions hereof and other good and valuable consideration, the Parties agree as follows: 
  
 1. Definitions. Article I is amended as follows: 
  
 (a) The definition of “Empress Target Closing Date” is deleted in its entirety and the following is substituted in lieu thereof:

  
 “Empress Target Closing Date” shall
mean the first Business Day of the month following the month in which the Empress System Election Date occurs. 
  
 (b) The following definitions are added to Article I: 
  
 “Empress System Election Date” shall have the meaning set forth in Section 7.16(b)(ii). 
  
 “Expanded Capabilities” shall have the meaning set forth in
Section 7.16(b)(i). 
  
 “Restoration Activities” shall
have the meaning set forth in Section 7.16(b)(i). 
  
 “Restoration Period” shall have the meaning set forth in Section 7.16(b)(iii)(C). 
  
 “Windstorm” shall have the meaning set forth in Section 7.16(a). 
  
 2. Section 7.16(a). Clause (iv) of Section 7.16(a) is amended by inserting the phrase: 
  
 “(excluding any Material Adverse Effect resulting from
the windstorm that struck the Empress System on June 21, 2005 (the “Windstorm”))” 
  
 after the first reference to “Material Adverse Effect” contained therein. 

 3. Sections 7.16(b) and (c). Section 7.16(b) is amended by renumbering the same a Section 7.16(c)
(and any references in the Agreement to such 7.16(b) shall be deemed to refer to such section as renumbered to be Section 7.16(c)) and by inserting the following as the new Section 7.16(b): 
  
 (b) (i) COP has already commenced and shall continue to
pursue expeditiously to completion (subject to clause (ii) below) the design, repair and replacement of components of the Empress System damaged by the Windstorm and the return of the Empress System to its normal operations and capabilities as they
existed prior to the Windstorm (the “Restoration Activities”). The Restoration Activities include removing the damaged cooling tower, installing temporary coolers and removing such temporary coolers once the permanent new cooling tower is
installed and fully operational, and constructing and installing a permanent new cooling tower and related facilities. COP shall consult with Duke regarding the Restoration Activities and shall consider Duke’s views in formulating and executing
COP’s plan for the conduct of the Restoration Activities, including any improvement or expansion of the cooling capabilities of such new permanent cooling tower and related facilities (the “Expanded Capabilities”). 
  
 (ii) The earlier of (i) the date three Business Days after
COP provides Duke written notice that the temporary coolers have been installed and the Empress System has been returned to, and has been operating for a period of 5 consecutive days at, its normal operations and capabilities as they existed prior
to the Windstorm or (ii) July 31, 2005, is herein referred to as the “Empress System Election Date”. On or before the Empress System Election Pate, Duke shall provide COP with definitive and irrevocable written notice of whether it elects
to have the ES Transferor transfer the Empress System Business to Duke and Duke Transferee (in which case, subject to the provisions of Section 7.16(a), Duke and the Duke Transferee shall pay the Empress System Amount to the ES Transferee). If Duke
does not so elect by the Empress System Election Date, Duke’s option to make such election shall lapse and be of no further effect (in which case, notwithstanding anything to the contrary in this Agreement, Duke and the Duke Transferee shall
keep the Empress System Amount). 
  
 (iii) If the
Empress Closing occurs, then: 
  
 (A) Duke will
take over from COP the Restoration Activities as of the Empress Closing Date and COP shall take such actions as are reasonably necessary to transition the Restoration Activities to Duke as of the Empress Closing Date. Duke shall provide to COP
periodically invoices, drafts and other documentation evidencing costs incurred by Duke in prosecuting to completion the Restoration Activities and COP shall reimburse the Duke Indemnified Parties from and against such costs arising out of the
Restoration Activities, other than additional costs associated with the Expanded Capabilities. 
  
 (B) COP shall indemnify and hold harmless the Duke Indemnified Parties from and against any claims, demands and causes of action relating
to periods prior to the Empress Closing Date asserted by any party to the contracts, agreement and leases assigned to the Duke Transferee pursuant to the System Business Assignment and pursuant to which such party is seeking to recover damages or
other amounts arising out of the shutdown of the Empress System due to the effects of the Windstorm including any failure to perform under such contract, agreement or lease and all Liabilities arising out of such claims, demands and causes of
action. For clarity purposes, the indemnification provided in this Section 7.16(b)(iii) shall not be subject to the provisions of Article X. 
  

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 (C) The Empress System Amount shall be reduced by an amount equal to (1) the sum of
$100,000 per day for each day occurring during the period (the “Restoration Period”) commencing (and including) July 1, 2005 and ending as of (and including) the Empress Closing Date less (2) the sum of $21,000 per day for each day
occurring during the Restoration Period. 
  
 4.
Miscellaneous. This Amendment may be executed in one or more counterparts, all of which shall be considered one and same agreement, and shall be effective when the one or more counterparts have been signed by each Party and delivered
(including by facsimile) to the other Parties. 
  
 Executed and delivered on the
date first set forth above. 
  

			
	CONOCOPHILLIPS
		
	By:	 	 /s/ John E. Lowe

	Name:	 	John E. Lowe
	Title:	 	Executive Vice President
	
	DUKE CAPITAL LLC
		
	By:	 	 /s/ Paul H. Barry

	Name:	 	Paul H. Barry
	Title:	 	Vice President
	
	DUKE ENERGY FIELD SERVICES, LLC
		
	By:	 	 /s/ Brent L. Backes

	Name:	 	Brent L. Backes
	Title:	 	Vice President, General Counsel and Secretary

  

 3Resolution of Board of Directors

 Exhibit 10.5 
  
 EXCERPT FROM THE 
 MINUTES OF A REGULAR MEETING OF THE 
 BOARD OF DIRECTORS OF DUKE ENERGY CORPORATION 
 HELD ON MAY 12, 2005 
  
 Upon motion duly made and seconded, it was unanimously 
  
 RESOLVED, That the Directors’ Compensation and Benefits Programs be, and they hereby are, revised to allow for the increase in payment of the
Board Retainer (stock) and Nuclear Oversight Committee attendance fees as set forth below: 
  

			
	Board Retainer (stock)	 	 •      $65,000 value (equity vehicle may vary)

		
	Nuclear Oversight Committee Meeting Fee	 	 •      $3,000 for in-person meetings held in conjunction with Board meetings, including bifurcated
meetings (e.g., meeting on day 1, with second meeting on day 2, both around Board meeting)

  
 FURTHER
RESOLVED, That all of the above-stated revisions are effective retroactive to May 1, 2005, except for the stock retainer, for which an award of 540 phantom stock units will be granted on May 12, 2005, (based on the May 11, 2005, closing price),
to make up for the difference in the revised annual value and the value of the award made in February, 2005.Form of Phantom Stock Award Agreement

 Exhibit 10.6 
  
 PHANTOM STOCK AWARD AGREEMENT 
  
 This Phantom Stock Award Agreement (the “Agreement”) has been made as of May 11, 2005, (the
“Date of Award”) between Duke Energy Corporation, a North Carolina corporation, with its principal offices in Charlotte, North Carolina (the “Corporation”), and Jimmy W. Mogg (the “Grantee”). 

 
 RECITALS 
  
 Under the Duke Energy Corporation 1998 Long-Term Incentive Plan as amended,
and 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. 
  
 AWARD 
  
 In accordance with the Plan, the Corporation has made this Award, effective as of the Date of Award 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 thirty-five thousand (35,000). 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 Award 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) 100% upon Grantee remaining continuously employed by the Corporation,
including Subsidiaries, until June 1, 2006. For purposes of vesting under this Section 2(a), if such employment terminates before June 1, 2006, and constitutes a “separation from service” under Code Section 409A, (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), 100% of the Phantom Stock units subject to this Award shall vest. 
  
 (b) 100%, if a Change in Control occurs after the Date of Award and,
following such occurrence and before June 1, 2006, such employment is terminated involuntarily, and not for cause, by the Corporation, or employing Subsidiary, and constitutes a “separation from service” under Code Section 409A.

  
 Section 3. 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 Award, except to the extent otherwise provided in Section 2,
and, if not previously vested and paid, or forfeited, shall expire immediately before the tenth anniversary of the Date of Award. 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, (ii) is forfeited, or (iii) expires. 

	

  
 Section
4. 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 Award and before the Dividend Equivalent expires. However, should the timing of a particular payment under Section 5 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 5. 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. However, in the event such units become vested in accordance with Section 2(b), or in accordance
with the last sentence of Section 2(a), then, unless waived by the Corporation upon its determination that Grantee is not a “specified employee” under Code Section 409A, such units shall not be payable before the date which is 6 months
after the date of “separation from service” under Code Section 409A (or, if earlier, the date of death of the Grantee). 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. Notwithstanding the foregoing, to the extent that Grantee fails to timely tender to the Corporation sufficient cash to satisfy withholding for tax requirements, the number of 
  

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 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 such requirements. In the event that, after any such reduction in the number of shares of Common Stock
to satisfy withholding for tax requirements, payment would be for any fractional vested Phantom Stock unit, payment, shall be made in a cash amount equal in value to the corresponding fraction of a share of Common Stock valued at Fair Market Value
on the date the respective Phantom Stock unit became fractionally vested, or if later, payable. 
  
 Section 6. 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 7. 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 8. 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 9. Governing Law. The validity and construction of this Agreement shall be governed by the laws of the state of North
Carolina applicable to transactions taking place entirely within that state. 
  
 Section 10. 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. 
  

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 Notwithstanding the foregoing, this Award is subject to cancellation by the Corporation in its sole
discretion unless the Grantee, by not later than                          , 2005, 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 (PB04A), Duke Energy Corporation, P. O. Box 1244, Charlotte, NC 28201-1244, 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
Award. 
  

							
	ATTEST:	 	DUKE ENERGY CORPORATION
				
	 By:
  
	 	 

	 	 By:
  
	 	 

	 	 	Corporate Secretary	 	Its:	 	Chairman and Chief Executive Officer

  

 4 

 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
                    , 2005. 
  

	
	  

	Grantee’s Signature
	
	  

	(print name)
	
	  

	(social security number)
	
	  

	(address)

  

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