Document:

EX-10.3

EXHIBIT 10.3

XENONICS HOLDINGS, INC.

WARRANT CERTIFICATE

CLASS A WARRANTS

THIS WARRANT CERTIFICATE (the “Warrant Certificate”) certifies that for value
received, The Norman Patriot LLC (the “Holder”) is the owner of warrants (the
"Warrants”), which entitle the Holder thereof to purchase at any time on or before the
Expiration Date (as defined below) Two Hundred Fifty Thousand (250,000) shares (the “Warrant
Shares”) of fully paid non-assessable shares of the common stock, par value $.001 per share,
(the “Common Stock”), of XENONICS HOLDINGS, INC. a Nevada corporation (the
"Company”), at a purchase price of Two Dollars and Twenty Cents ($2.20) per Warrant Share
(the “Purchase Price”), in lawful money of the United States of America by bank or
certified check, subject to adjustment as hereinafter provided.

THE WARRANTS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY
STATES. THESE WARRANTS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF
THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES
MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER
TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.

1. PURCHASE PRICE.

The Warrants entitle the Holder to purchase the Warrant Shares at the Purchase Price. The
Purchase Price and the number of Warrant Shares evidenced by this Warrant Certificate are subject
to adjustment as provided in Article 7.

2. EXPIRATION DATE.

(a) The Warrants are exercisable, at the option of the Holder, at any time after the
date of issuance and on or before the Expiration Date (as defined below) by delivering to
the Company written notice of exercise (the “Exercise Notice”), stating the number
of Warrant Shares to be purchased thereby, accompanied by bank or certified check payable to
the order of the Company for the Warrant Shares to be purchased. Within twenty business
days of the Company’s receipt of the Exercise Notice accompanied by the consideration for
the Warrant Shares being purchased, the Company shall issue and deliver to the Holder a
certificate representing the Warrant Shares being purchased. In the case of exercise for
less than all of the Warrant Shares represented by this Warrant Certificate, the Company
shall cancel this Warrant Certificate upon the surrender thereof and shall execute and
deliver a new Warrant Certificate for the balance of such Warrant Shares.

(b) The term “Expiration Date” shall mean 5:00 p.m., California time, on April
13, 2011, or if such date shall in the State of California be a holiday or a day on which
banks are authorized to close, then 5:00 p.m., California time, the next following day which
in the State of California is not a holiday or a day on which banks are authorized to close.

3. RESTRICTIONS ON TRANSFER.

(a) Restrictions. The Warrants and the Warrant Shares or any other security
issuable upon exercise of the Warrants may not be assigned, transferred, sold, or otherwise
deposed of unless (i) there is in effect a registration statement under the Securities Act
of 1933, as amended (the “Act”), covering such sale, transfer, or other disposition
or (ii) the Holder furnishes to the Company an opinion of counsel, reasonably acceptable to
counsel for the Company, to the effect that the proposed sale, transfer, or other
disposition may be effected without registration under the Act, as well as such other
documentation incident to such sale, transfer, or other disposition as the Company’s counsel
shall reasonably request.

(b) Legend. Any Warrant Shares issued upon the exercise of the Warrants shall
bear a legend to the following effect:

“The shares evidenced by this certificate were issued upon exercise
of Warrants and may not be sold, transferred, or otherwise disposed
of in the absence of an effective registration under the Securities
Act of 1933 (the “Act”) or an opinion of counsel, reasonably
acceptable to counsel for the Company, to the effect that the
proposed sale, transfer, or disposition may be effectuated without
registration under the Act.”

4. RESERVATION OF SHARES.

The Company covenants that it will at all times reserve and keep available out of its
authorized Common Stock, solely for the purpose of issuance upon exercise of the Warrants, such
number of shares of Common Stock as shall then be issuable upon the exercise of the Warrants. The
Company covenants that all shares of Common Stock which shall be issuable upon exercise of the
Warrants shall be duly and validly issued and fully paid and non-assessable and free from all
taxes, liens, and charges with respect to the issue thereof. Notwithstanding anything to the
contrary in this Warrant Certificate, no Warrant Shares shall be issued pursuant to this Warrant
Certificate unless and until the Company has received approval to issue such shares from the
American Stock Exchange or from any other securities exchange or Nasdaq market on which shares of
Common Stock may be traded as of the date of the Holder’s Warrant exercise.

5. LOSS OR MUTILATION.

Upon receipt by the Company of reasonable evidence of the loss, theft, destruction, or
mutilation of this Warrant Certificate and, in the case of loss, theft, or destruction, of
indemnity reasonably satisfactory to the Company, or in the case of mutilation, upon surrender and
cancellation of the mutilated Warrant Certificate, the Company shall execute and deliver in lieu
thereof, a new Warrant Certificate representing an equal number of Warrant Shares exercisable
thereunder.

6. REDEMPTION RIGHT.

Notwithstanding any provision in this Warrant Certificate to the contrary, the Company
reserves the right to redeem the outstanding Warrants evidenced by this Warrant Certificate at any
time prior to the full or partial exercise of such Warrants by giving the Holder at least thirty
days’ prior written notice of such redemption if the closing price of the Common Stock has been at
least $2.75 per share on each of twenty consecutive trading days, provided that the Company’s
redemption notice must be delivered no later than the third business day after the end of any such
twenty-day period. The redemption price of the Warrants shall be $0.001 per share. If this
Warrant Certificate is either not exercised or tendered back to the Company by the end of the date
specified in the redemption notice, this Warrant Certificate shall be canceled on the books of the
Company and shall have no further value except for the $0.001 per share redemption price.

7 ANTI-DILUTION PROVISIONS.

(a) The number of shares of Common Stock and the Purchase Price per Warrant Share
pursuant to this Warrant Certificate shall be subject to adjustment from time to time as
provided for in this Section 7(a). Notwithstanding any provision contained herein, the
aggregate Purchase Price for the total number of Warrant Shares issuable pursuant to this
Warrant Certificate shall remain unchanged. In case the Company shall at any time change as
a whole, by subdivision or combination in any manner or by the making of a stock dividend,
the number of outstanding shares of Common Stock into a different number of shares, (i) the
number of shares which the Holder of this Warrant Certificate shall have been entitled to
purchase pursuant to this Warrant Certificate shall be increased or decreased in direct
proportion to such increase or decrease of shares, as the case may be, and (ii) the Purchase
Price per Warrant Share (but not the aggregate Purchase Price) in effect immediately prior
to such change shall be increased or decreased in inverse proportion to such increase or
decrease of shares, as the case may be.

(b) In case of any capital reorganization or any reclassification of the capital stock
of the Company or in case of the consolidation or merger of the Company with another
corporation (or in the case of any sale, transfer, or other disposition to another
corporation of all or substantially all the property, assets, business, and goodwill of the
Company), the Holder of this Warrant Certificate shall thereinafter be entitled to purchase
the kind and amount of shares of capital stock which this Warrant Certificate entitled the
Holder to purchase immediately prior to such capital reorganization, reclassification of
capital stock, consolidation, merger, sale, transfer, or other disposition; and in any such
case appropriate adjustments, shall be made in the application of the provisions of this
Section 7 with respect to rights and interests thereafter of the Holder of this Warrant
Certificate to the end that the provisions of this Section 7 shall thereafter be applicable,
as nearly as reasonably possible, in relation to any shares or other property thereafter
purchasable upon the exercise of this Warrant Certificate.

(c) Fractional Shares. No certificate for fractional shares shall be issued
upon the exercise of the Warrants, but in lieu thereof the Company shall purchase any such
fractional shares calculated to the nearest cent.

(d) Rights to the Holder. The Holder of this Warrant Certificate shall not be
entitled to any rights of a shareholder of the Company in respect to any Warrant Shares
purchasable upon the exercise hereof until such Warrant Shares have been paid for in full
and issued to it. As soon as practicable after such exercise, the Company shall deliver a
certificate or certificates for the number of full shares of Common Stock issuable upon such
exercise, to the person or persons entitled to receive the same.

8. REPRESENTATIONS AND WARRANTIES.

The Holder, by acceptance of this Warrant Certificate, represents and warrants to, and
covenants and agrees with, the Company as follows:

(a) This Warrant Certificate and the Warrants are being acquired for the Holder’s own
account for investment and not with a view toward resale or distribution of any part
thereof, and the Holder has no present intention of selling, granting any participation in,
or otherwise distributing the same.

(b) The Holder is aware that the Warrants are not registered under the Act or any state
securities or blue sky laws and, as a result, substantial restrictions exist with respect to
the transferability of the Warrants and the Warrant Shares to be acquired upon exercise of
the Warrants.

(c) The Holder is an accredited investor as defined in Rule 501(a) of Regulation D
under the Act and is a sophisticated investor familiar with the type of risks inherent in
the acquisition of securities such as the Warrants, and its financial position is such that
it can afford to retain the Warrants and the Warrant Shares for an indefinite period of time
without realizing any direct or indirect cash return on this investment.

9. MISCELLANEOUS.

(a) Transfer Taxes: Expenses. The Holder shall pay any and all underwriters’
discounts, brokerage fees, and transfer taxes incident to the sale or exercise of the
Warrants or the sale of the underlying shares issuable thereunder, and shall pay the fees
and expenses of any special attorneys or accountants retained by it.

(b) Notice. Any notice or other communication required or permitted to be
given to the Company shall be in writing and shall be delivered by certified mail with
return receipt or delivered in person against receipt, as follows:

Xenonics Holdings, Inc.

2236 Rutherford Road, Suite 123

Carlsbad, CA 92008

(c) Governing Law. This Warrant Certificate shall be governed by, and
construed in accordance with, the laws of the State of California, without reference to the
conflicts of law principles of such state.

IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed as of
the date set forth below.

XENONICS HOLDINGS, INC,

By /s/ Richard Naughton 

Its: Chief Executive Officer 

Date: April 13, 2006

1

XENONICS HOLDINGS, INC.

WARRANT CERTIFICATE

CLASS B WARRANTS

THIS WARRANT CERTIFICATE (the “Warrant Certificate”) certifies that for value
received, The Norman Patriot LLC (the “Holder”) is the owner of warrants (the
"Warrants”), which entitle the Holder thereof to purchase on or before the Expiration Date
(as defined below) Two Hundred Fifty Thousand (250,000) shares (the “Warrant Shares”) of
fully paid non-assessable shares of the common stock, par value $.001 per share, (the “Common
Stock”), of XENONICS HOLDINGS, INC., a Nevada corporation (the “Company”), at a
purchase price of Three Dollars and Twenty Cents ($3.20) per Warrant Share (the “Purchase
Price”), in lawful money of the United States of America by bank or certified check, subject to
adjustment as hereinafter provided.

THE WARRANTS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY
STATES. THESE WARRANTS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF
THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES
MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER
TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.

1. PURCHASE PRICE.

The Warrants entitle the Holder to purchase the Warrant Shares at the Purchase Price. The
Purchase Price and the number of Warrant Shares evidenced by this Warrant Certificate are subject
to adjustment as provided in Article 7.

2. VESTING AND EXPIRATION DATES.

(a) The Warrants shall become vested and exercisable only if and when all of the
Company’s Class A Warrants, as evidenced by the Warrant Certificate dated April 13, 2006
executed by the Company in favor of the Holder, have been fully exercised and all of the
 shares of Common Stock underlying such Class A Warrants have been purchased and paid for by
the Holder.

(b) Upon becoming exercisable in accordance with the terms of Section 2(a), the
Warrants are exercisable, at the option of the Holder, at any time thereafter and on or
before the Expiration Date (as defined below) by delivering to the Company written notice of
exercise (the “Exercise Notice”), stating the number of Warrant Shares to be
purchased thereby, accompanied by bank or certified check payable to the order of the
Company for the Warrant Shares to be purchased. Within twenty business days of the
Company’s receipt of the Exercise Notice accompanied by the consideration for the Warrant
Shares being purchased, the Company shall issue and deliver to the Holder a certificate
representing the Warrant Shares being purchased. In the case of exercise for less than all
of the Warrant Shares represented by this Warrant Certificate, the Company shall cancel this
Warrant Certificate upon the surrender thereof and shall execute and deliver a new Warrant
Certificate for the balance of such Warrant Shares.

(c) The term “Expiration Date” shall mean 5:00 p.m., California time,

on April 13, 2011, or if such date shall in the State of California be a holiday or a day on
which banks are authorized to close, then 5:00 p.m., California time, the next following day
which in the State of California is not a holiday or a day on which banks are authorized to
close.

3. RESTRICTIONS ON TRANSFER.

(a) Restrictions. The Warrants and the Warrant Shares or any other security
issuable upon exercise of the Warrants may not be assigned, transferred, sold, or otherwise
deposed of unless (i) there is in effect a registration statement under the Securities Act
of 1933, as amended (the “Act”), covering such sale, transfer, or other disposition
or (ii) the Holder furnishes to the Company an opinion of counsel, reasonably acceptable to
counsel for the Company, to the effect that the proposed sale, transfer, or other
disposition may be effected without registration under the Act, as well as such other
documentation incident to such sale, transfer, or other disposition as the Company’s counsel
shall reasonably request.

(b) Legend. Any Warrant Shares issued upon the exercise of the Warrants shall
bear a legend to the following effect:

“The shares evidenced by this certificate were issued upon exercise
of Warrants and may not be sold, transferred, or otherwise disposed
of in the absence of an effective registration under the Securities
Act of 1933 (the “Act”) or an opinion of counsel, reasonably
acceptable to counsel for the Company, to the effect that the
proposed sale, transfer, or disposition may be effectuated without
registration under the Act.”

4. RESERVATION OF SHARES.

The Company covenants that it will at all times reserve and keep available out of its
authorized Common Stock, solely for the purpose of issuance upon exercise of the Warrants, such
number of shares of Common Stock as shall then be issuable upon the exercise of the Warrants. The
Company covenants that all shares of Common Stock which shall be issuable upon exercise of the
Warrants shall be duly and validly issued and fully paid and non-assessable and free from all
taxes, liens, and charges with respect to the issue thereof. Notwithstanding anything to the
contrary in this Warrant Certificate, no Warrant Shares shall be issued pursuant to this Warrant
Certificate unless and until the Company has received approval to issue such shares from the
American Stock Exchange or from any other securities exchange or Nasdaq market on which shares of
Common Stock may be traded as of the date of the Holder’s Warrant exercise.

5. LOSS OR MUTILATION.

Upon receipt by the Company of reasonable evidence of the loss, theft, destruction, or
mutilation of this Warrant Certificate and, in the case of loss, theft, or destruction, of
indemnity reasonably satisfactory to the Company, or in the case of mutilation, upon surrender and
cancellation of the mutilated Warrant Certificate, the Company shall execute and deliver in lieu
thereof, a new Warrant Certificate representing an equal number of Warrant Shares exercisable
thereunder.

6. REDEMPTION RIGHT.

Notwithstanding any provision in this Warrant Certificate to the contrary, the Company
reserves the right to redeem the outstanding Warrants evidenced by this Warrant Certificate at any
time prior to the full or partial exercise of such Warrants by giving the Holder at least thirty
days’ prior written notice of such redemption if the closing price of the Common Stock has been at
least $4.00 per share on each of twenty consecutive trading days, provided that the Company’s
redemption notice must be delivered no later than the third business day after the end of any such
twenty-day period. The redemption price of the Warrants shall be $0.001 per share. If this
Warrant Certificate is either not exercised or tendered back to the Company by the end of the date
specified in the redemption notice, this Warrant Certificate shall be canceled on the books of the
Company and shall have no further value except for the $0.001 per share redemption price.

7. ANTI-DILUTION PROVISIONS.

(a) The number of shares of Common Stock and the Purchase Price per Warrant Share
pursuant to this Warrant Certificate shall be subject to adjustment from time to time as
provided for in this Section 7(a). Notwithstanding any provision contained herein, the
aggregate Purchase Price for the total number of Warrant Shares issuable pursuant to this
Warrant Certificate shall remain unchanged. In case the Company shall at any time change as
a whole, by subdivision or combination in any manner or by the making of a stock dividend,
the number of outstanding shares of Common Stock into a different number of shares, (i) the
number of shares which the Holder of this Warrant Certificate shall have been entitled to
purchase pursuant to this Warrant Certificate shall be increased or decreased in direct
proportion to such increase or decrease of shares, as the case may be, and (ii) the Purchase
Price per Warrant Share (but not the aggregate Purchase Price) in effect immediately prior
to such change shall be increased or decreased in inverse proportion to such increase or
decrease of shares, as the case may be.

(b) In case of any capital reorganization or any reclassification of the capital stock
of the Company or in case of the consolidation or merger of the Company with another
corporation (or in the case of any sale, transfer, or other disposition to another
corporation of all or substantially all the property, assets, business, and goodwill of the
Company), the Holder of this Warrant Certificate shall thereinafter be entitled to purchase
the kind and amount of shares of capital stock which this Warrant Certificate entitled the
Holder to purchase immediately prior to such capital reorganization, reclassification of
capital stock, consolidation, merger, sale, transfer, or other disposition; and in any such
case appropriate adjustments, shall be made in the application of the provisions of this
Section 7 with respect to rights and interests thereafter of the Holder of this Warrant
Certificate to the end that the provisions of this Section 7 shall thereafter be applicable,
as nearly as reasonably possible, in relation to any shares or other property thereafter
purchasable upon the exercise of this Warrant Certificate.

(c) Fractional Shares. No certificate for fractional shares shall be issued
upon the exercise of the Warrants, but in lieu thereof the Company shall purchase any such
fractional shares calculated to the nearest cent.

(d) Rights to the Holder. The Holder of this Warrant Certificate shall not be
entitled to any rights of a shareholder of the Company in respect to any Warrant Shares
purchasable upon the exercise hereof until such Warrant Shares have been paid for in full
and issued to it. As soon as practicable after such exercise, the Company shall deliver a
certificate or certificates for the number of full shares of Common Stock issuable upon such
exercise, to the person or persons entitled to receive the same.

8. REPRESENTATIONS AND WARRANTIES.

The Holder, by acceptance of this Warrant Certificate, represents and warrants to, and
covenants and agrees with, the Company as follows:

(a) This Warrant Certificate and the Warrants are being acquired for the Holder’s own
account for investment and not with a view toward resale or distribution of any part
thereof, and the Holder has no present intention of selling, granting any participation in,
or otherwise distributing the same.

(b) The Holder is aware that the Warrants are not registered under the Act or any state
securities or blue sky laws and, as a result, substantial restrictions exist with respect to
the transferability of the Warrants and the Warrant Shares to be acquired upon exercise of
the Warrants.

(c) The Holder is an accredited investor as defined in Rule 501(a) of Regulation D
under the Act and is a sophisticated investor familiar with the type of risks inherent in
the acquisition of securities such as the Warrants, and its financial position is such that
it can afford to retain the Warrants and the Warrant Shares for an indefinite period of time
without realizing any direct or indirect cash return on this investment.

9. MISCELLANEOUS.

(a) Transfer Taxes: Expenses. The Holder shall pay any and all underwriters’
discounts, brokerage fees, and transfer taxes incident to the sale or exercise of the
Warrants or the sale of the underlying shares issuable thereunder, and shall pay the fees
and expenses of any special attorneys or accountants retained by it.

(b) Notice. Any notice or other communication required or permitted to be
given to the Company shall be in writing and shall be delivered by certified mail with
return receipt or delivered in person against receipt, as follows:

Xenonics Holdings, Inc.

2236 Rutherford Road, Suite 123

Carlsbad, CA 92008

(c) Governing Law. This Warrant Certificate shall be governed by, and
construed in accordance with, the laws of the State of California, without reference to the
conflicts of law principles of such state.

IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed as of
the date set forth below.

XENONICS HOLDINGS, INC,

By /s/ Richard Naughton 

Its: Chief Executive Officer 

Date: April 13, 2006

2EX-10.1

 David J. Dzuricky

Piedmont Natural Gas Company, Inc.

Maximum # of shares to sell under the Plan: 9,000

Rule 10b5-1 Sales Plan and Client Representations

I, David J. Dzuricky, as of the date below, establish this Sales Plan (“Plan”) in order to
sell shares of the common stock (“Shares”) of Piedmont Natural Gas Company, Inc. (“Issuer”)
pursuant to the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended
(“Exchange Act”). I request that Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill
Lynch”) execute the Plan as follows:

	1.	 	Sales Instructions for Sales Starting on December 1, 2006 and ending on December 31,
2006,

	1.1.	 	For owned shares you are authorized to sell pursuant to the attached SEC Rule 10b5-1 Sales
Instruction and Notice Provision — Annex:

	2.	 	Execution, Average Pricing and Pro Rata Allocation of Sales

	2.1.	 	I agree and acknowledge that:

	 	1.	 	If my order to sell Shares pursuant to the Plan, whether market or limit, is handled
by a Merrill Lynch trading desk, my order shall be handled as “not held”. A “not held” or
“working order” permits a Merrill Lynch trader to use reasonable brokerage judgment,
exercising price and time discretion, as to when to execute the order.

	 	2.	 	Merrill Lynch may execute my order: (a) in a single transaction or multiple
transactions during the course of the trading day, or (b) it may aggregate my order with
other orders for other sellers of the Issuer’s securities that may or may not have been
accepted pursuant to a Rule 10b5-1 sales plan, execute them as a block or in multiple
smaller transactions, and allocate an average price to each seller.

	 	3.	 	When orders are aggregated, Merrill Lynch shall allocate the proceeds of shares sold
pro rata among the sellers, based on the ratio of (x) the shares to be sold and (y) the
sum of the proceeds of all shares sold, and Merrill Lynch will provide each seller an
“average price confirmation” that identifies the amount of securities sold for the
applicable seller together with an average price for sales.

	3.	 	Stock Splits/  Reincorporation/Reorganizations

	3.1	 	In the event of a stock split or reverse stock split, the quantity and price at which the
Shares are to be sold will be automatically adjusted proportionately.

	3.2	 	In the event of a reincorporation or other corporate reorganization resulting in an automatic
share-for-share exchange of new shares for the Shares subject to the Plan, then the new shares
will automatically replace the Shares originally specified in the Plan.

	4.	 	Account Credit

	4.1	 	In the event any scheduled sale of Shares or exercise of stock options and sale of the
underlying Shares is not executed as provided in Section 1 (or Section 7, if applicable) of
the Plan, my account will be credited as if such sale or exercise had taken place as scheduled
or provided in Section 7.

	5.	 	Compliance with Rule 144 and Rule 145

	5.1	 	I understand and agree that if I am an affiliate or control person for purposes of Rule 144
under the Securities Act of 1933, as amended (“Securities Act”), or if the Shares subject to
the Plan are restricted securities subject to limitations under Rule 144 or eligible for
resale under Rule 145, then all sales of Shares under the Plan will be made in accordance with
the applicable provisions of Rule 144.

	5.2	 	I request and authorize Merrill Lynch to complete and file on my behalf any Forms 144
(pre-signed by me) necessary to effect sales under the Plan.

	5.3	 	If appropriate, I understand and agree that, upon my prompt signature and delivery to Merrill
Lynch of Form 144, Merrill Lynch will either: (a) make one Form 144 filing at the beginning
of each three-month period commencing with the date of the first sale made in connection with
the Plan or (b) file Form 144 for each sale made in connection with the Plan.

	5.4	 	Each Form 144 shall state the following: “This proposed sale is made pursuant to a plan
intended to comply with Rule 10b5-1(c), previously entered into on [insert plan adoption
date], at which time I was not aware of material nonpublic information.”

	5.5	 	Merrill Lynch will conduct sales pursuant to Rule 144 or Rule 145 if appropriate, including
applying Rule 144 volume limitations as if the sales under the Plan were the only sales
subject to the volume limitations.

	5.6.	 	I agree not to take any action or to cause any other person or entity to take any action that
would require me to aggregate sales of Shares pursuant to Rule 144; and not to take any action
that would cause the sales of Shares under the Plan not to comply with Rule 144 or Rule 145.

	6.	 	Representations, Warranties and Covenants

In consideration of Merrill Lynch accepting orders to sell securities under this Plan, I make the
following representations, warranties and covenants:

	6.1	 	I have established the Plan in good faith, in compliance with the requirements of Rule
10b5-1, and at a time when I was not aware of material nonpublic information about the Shares
or the Issuer.

	6.2	 	I have consulted with legal counsel and other advisors in connection with my decision to
enter into the Plan and have confirmed that the Plan meets the criteria set forth in Rule
10b5-1. I have not received or relied on any representations by Merrill Lynch regarding the
Plan’s compliance with Rule 10b5-1.

	6.3	 	I have provided, or caused the Issuer to provide, Merrill Lynch with a certificate completed
by the Issuer, substantially in the form of Annex A hereto (“Issuer Certificate”).

	6.4.	 	I own all Shares that are subject to the Plan free and clear of liens or encumbrances of any
kind. I will own any Shares acquired under employee stock options exercised pursuant to the
Plan free and clear of liens or encumbrances, except for any liens or encumbrances in favor of
Merrill Lynch. There are no restrictions imposed on me, the Shares or the Issuer that would
prevent Merrill Lynch or me from complying with the Plan.

	6.5.	 	While the Plan is in effect, except as provided in the Plan, I will not engage in offsetting
or hedging transactions in violation of Rule10b5-1; and I will notify Merrill Lynch in advance
of any sales or purchases of, or derivative transactions on, any of the Issuer’s securities
initiated by me.

	6.6.	 	While the Plan is in effect, I will not disclose to any employee of Merrill Lynch, including
my Private Wealth Advisor or Financial Advisor, any material nonpublic information concerning
the Shares or the Issuer.

	6.7.	 	While the Plan is in effect, I will not attempt to exercise any influence over how, when or
whether to effect sales of Shares.

	6.8.	 	The Plan does not violate the Issuer’s insider trading policies.

	6.9.	 	I agree to make or cause to be made all filings required under the Securities Act and/or the
Exchange Act, including under Rule 144 and pursuant to Section 13 and Section 16 of the
Exchange Act, and any other filings necessary.

	6.10.	 	As to delivery requirements:

	 	1.	 	For securities other than stock options, prior to the date of execution of any sales
specified under the Plan, I agree to have delivered into the custody of Merrill Lynch the
total amount of the Shares that may be sold pursuant to the Plan, together with all
transfer documents and other authorizations required for Merrill Lynch to effect
settlement of sales of such Shares on my behalf.

	 	2.	 	For employee stock options, the number of options granted to me by the Issuer that
are vested, exercisable and registered is equal to or greater than the number of options
to be exercised and the underlying Shares to be sold under the Plan. I agree to provide
to Merrill Lynch all necessary documentation, properly executed, to effect the timely
exercise of the stock options and the subsequent sale and settlement of the Shares.

	 	3.	 	I agree that Merrill Lynch’s obligation to execute sales under the Plan is
conditioned on the satisfaction of the foregoing delivery requirements.

	6.11.	 	I agree to inform Merrill Lynch as soon as possible of any of the following:

	 	1.	 	any subsequent restrictions imposed on me due to changes in the securities (or other)
laws or of any contractual restrictions imposed on the Issuer that would prevent Merrill
Lynch or me from complying with the Plan, and

	 	2.	 	the occurrence of any event as set forth in the Plan that would cause the Plan to be
suspended or terminated under Section 7 or Section 8 of the Plan, respectively.

	7.	 	Suspension

	7.1	 	Sales pursuant to Section 1 above shall be suspended where:

	 	1.	 	trading of the Shares on the Exchange is suspended for any reason;

	 	2.	 	there is insufficient demand for any or all of the Shares at or above the specified
price (e.g., the specified price met but all Shares could not be sold at or above
the specified price);

	 	3.	 	Merrill Lynch, in its sole discretion, determines that there is a legal, regulatory
or contractual reason why it cannot effect a sale of Shares;

	 	4.	 	Merrill Lynch is notified in writing by the Issuer that a sale of Shares should not
be effected due to legal, regulatory or contractual restrictions applicable to the Issuer
or to me (including without limitation, Regulation M);

	 	5.	 	Merrill Lynch is notified in writing by the Issuer that (i) in the case of Shares
being sold pursuant to a registration statement filed under the Securities Act, the
registration statement has terminated, been suspended, expired or is otherwise
unavailable; or (ii) a public announcement of a public offering of securities by the
Issuer has been made.

	7.2	 	Merrill Lynch will resume sales in accordance with the Plan as promptly as practicable after
(a) Merrill Lynch receives notice in writing from the Issuer that it may resume sales in
accordance with Section 1 of the Plan in the case of the occurrence of an Event described in
7.1.4 or 7.1.5 above or (b) Merrill Lynch determines, in its sole discretion, that it may
resume sales in accordance with the Plan in the case of the occurrence of an Event described
in 7.1.1, 7.1.2 or 7.1.3 above.

	7.3	 	Shares allocated under the Plan for sale during a period that has elapsed due to a suspension
under this Section will be carried forward to be sold with the next amount of shares to be
sold in accordance with Section 1 of the Plan.

	7.4	 	In the event Section 1 of the Plan provides for an amount of Shares to be sold during a given
period pursuant to a limit order, Shares that would otherwise be permitted to be sold during
that period, shall, upon lapse of the suspension, nonetheless be carried forward to be sold
with the next amount of Shares to be sold in accordance with Section 1 of the Plan.

	7.5	 	Merrill Lynch is released from all liability in connection with any suspension of sales,
including, but not limited to, liability for the expiration of stock options or loss of market
value.

	8.	 	Termination

	8.1	 	The Plan shall terminate on the earliest to occur of the following:

	 	1.	 	the termination date listed above;

	 	2.	 	the completion of all sales contemplated in Section 1 of the Plan;

	 	3.	 	my or Merrill Lynch’s reasonable determination that: (a) the Plan does not comply
with Rule 10b5-1 or other applicable securities laws; (b) I have not complied with the
Plan, Rule 10b5-1 or other applicable securities laws; or (c) I have made misstatements in
my representations or warranties in Section 6, above;

	 	4.	 	receipt by Merrill Lynch of written notice from the Issuer or me of: (a) the filing
of a bankruptcy petition by the Issuer; (b) the public announcement of a merger,
recapitalization, acquisition, tender or exchange offer, or other business combination or
reorganization resulting in the exchange or conversion of the Shares of the Issuer into
 shares of a company other than the Issuer; or (c) the conversion of the Shares into rights
to receive fixed amounts of cash or into debt securities and/or preferred stock (whether
in whole or in part);

	 	5.	 	receipt by Merrill Lynch of written notice of my death; or

	 	6.	 	receipt by Merrill Lynch of written notice of termination from me.

	9.	 	Indemnification

	9.1	 	I agree to indemnify and hold harmless Merrill Lynch and its directors, officers, employees
and affiliates from and against all claims, losses, damages and liabilities, including,
without limitation, any legal or other expenses reasonably incurred in connection with
defending or investigating any such claim, arising out of or attributable to Merrill Lynch’s
actions taken in compliance with the Plan, any breach by me of the Plan, or any violation by
me of applicable federal or state laws or regulations. This indemnification shall survive
termination of the Plan.

	9.2	 	Merrill Lynch agrees to indemnify and hold me harmless from and against all claims, losses,
damages and liabilities including, without limitation, any legal or other expenses reasonably
incurred in connection with defending or investigating any such action or claim, arising out
of or attributable to Merrill Lynch’s gross negligence or willful misconduct in connection
with the Plan.

	10.	 	Modification and Amendment

	10.1	 	The Plan may be modified or amended only upon (a) the written agreement of me and Merrill
Lynch; (b) the receipt by Merrill Lynch of a certificate signed by me to the effect that the
representations, warranties and covenants contained in Section 6 above, are true as of the
date of such certificate; and (c) the receipt by Merrill Lynch of an Issuer Certificate.

	11.	 	Counterparts

	 	 	The Plan may be signed in counterparts, each of which will be an original.

	12.	 	Entire Agreement

The Plan, including the representations, warranties and covenants in Section 6, constitutes the
entire agreement between me and Merrill Lynch regarding the Plan and supersedes any prior
agreements or understandings regarding the Plan.

	13.	 	Notices

	 	 	 	All notices given by the parties under the Plan will be as specified in the Sales

	 	 	 	Annex and Notice Provision

If seller is subject to the reporting requirements of Section 16 of the Exchange Act, complete the
following to have transaction information for open market transactions under the Plan forwarded to
a designated third party.

	14	 	Officer & Director Equity Service

	14.1	 	I authorize Merrill Lynch to transmit transaction information via facsimile and/or email
regarding open market transactions under the Plan to:

	 	 	 	Name : David J. Dzuricky Name : Martin C. Ruegsegger

	 	 	 	 	 
	Title :Senior Vice President and
	 	Title :Vice President, Corporate Counsel

	Chief Financial Officer
	 	& Secretary

	Organization :Peidmont
	 	Organization :Piedmont

	Fax : 704-365-8515
	 	Fax : 704-365-8515

	Tel : 704-731-4547
	 	Tel :  704-731-4202

	 	 	 	e-mail : david.dzuricky@piedmontng.com marty.ruegsegger@piedmontng.com

	14.2	 	I understand that reasonable efforts will be made to transmit transaction information for
open market transactions under the Plan (purchase or sale) by the close of business on the day
of the purchase or sale, but no later than the close of business on the first trading day
following the purchase or sale.

	14.3	 	I acknowledge that Merrill Lynch (a) has no obligation to confirm receipt of any email or
faxed information by the designated contact and (b) has no responsibility or liability for
filing a Form 4 with the SEC or for compliance with Section 16 of the Exchange Act.

	14.4	 	If any of the above contact information changes, or I would like to terminate this
authorization, I will promptly notify Merrill Lynch in writing. I further authorize Merrill
Lynch to transmit transaction information to a third party service provider who will make the
information available to my designated representative(s) listed above.

	15.	 	Governing Law

This Plan will be governed by and construed in accordance with the laws of the State of New York.

By: /s/ David J. Dzuricky

	 	 	David J. Dzuricky

Date: April 11, 2006

Acknowledged and Agreed this 18th day of

April, 2006:

Merrill Lynch, Pierce, Fenner & Smith

Incorporated

By: /s/ E. A. Lachanski

Name: E. A. Lachanski

Title: Administrative Manager/VP

Annex A – Issuer Certificate

This Annex A may not be amended except in accordance with the Plan.

	1.	 	Piedmont Natural Gas Company, Inc. (the “Issuer”) certifies that it has approved,
and retained a copy of, the Sales Plan dated April 11, 2006 (the “Plan”) between David J.
Dzuricky (“Seller”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”)
relating to the common stock of the Issuer (the “Shares”).

	2.	 	The Plan is consistent with Issuer’s insider trading policies, and, to the best of Issuer’s
knowledge, there are no legal, contractual or regulatory restrictions applicable to Seller as
of the date of this representation that would prohibit Seller from entering into the Plan or
effecting any sale of Shares pursuant to the Plan.

	3.	 	While the Plan is effective, Issuer agrees to provide notice as soon as practicable to
Merrill Lynch in the event of:

	 	a.	 	the selling of the Shares pursuant to a registration statement or the
termination, expiration, suspension or unavailability of the registration statement;

	 	b.	 	a public announcement of a public offering of securities by the Issuer;

	 	c.	 	a legal, regulatory or contractual restriction applicable to Seller or
Seller’s affiliates, including without limitation, under Regulation M, that would
prohibit any sale pursuant to the Plan (other than any such restriction relating to
Seller’s possession or alleged possession of material nonpublic information about the
Issuer or its securities) (the notice merely stating that a restriction applies to
Seller without specifying the reasons for the restriction);

	 	d.	 	the filing of a bankruptcy petition by the Issuer;

	 	e.	 	the public announcement of a merger, recapitalization, acquisition, tender or
exchange offer, or other business combination or reorganization resulting in the
exchange or conversion of the Shares of the Issuer into shares of a company other than
the Issuer; or

	 	f.	 	the conversion of the Shares into rights to receive fixed amounts of cash or
into debt securities and/or preferred stock (whether in whole or in part).

The notice shall be provided by facsimile as specified in the attached Notice Provision and
shall indicate the anticipated duration of the restriction but shall not include any other
information about the nature of the restriction or its applicability to Seller. In any event,
the Issuer shall not communicate any material nonpublic information about Issuer or its
securities to Merrill Lynch with respect to the Plan.

	4.	 	To avoid delays in connection with transfers of stock certificates and settlement of
transactions under the Plan, and in acknowledgment of Merrill Lynch’s agreement in Section 5
of the Plan that sales of Shares under the Plan will be effected in compliance with Rule 144,
the Issuer agrees that it will, immediately upon Seller’s directing delivery of Shares into an
account at Merrill Lynch in the name of and for the benefit of Seller, instruct its transfer
agent to process the transfer of Shares and issue a new certificate to Seller that does not
bear any legend or statement restricting its transferability to a buyer.

	 	5.	 	If the Plan covers options, Issuer acknowledges that Seller has authorized Merrill Lynch to
serve as Seller’s agent and attorney-in-fact to exercise certain stock options to purchase
the Shares from time to time pursuant to the Plan. Issuer agrees to accept, acknowledge and
effect the exercise of such stock options by Merrill Lynch and the delivery of the underlying
Shares to Merrill Lynch, free of any legend or statement restricting their transferability to
a buyer. By signing below and upon delivery of funds representing the exercise price (plus
any applicable taxes), the Issuer, for itself and its agents, acknowledges: (1) the security
interest of Merrill Lynch in the underlying Shares and (2) that prior to delivery to Merrill
Lynch, the Issuer holds the underlying Shares as bailee for Merrill Lynch.

Dated: April 11, 2006

By: /s/ Martin C. Ruegsegger

Martin C. Ruegsegger

Vice President, Corporate Counsel and Secretary

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