Document:

Exhibit 10.1

 

VOTING AGREEMENT

 

THIS VOTING AGREEMENT (this “Agreement”), dated as of January 8th, 2007, by and among BankAtlantic Bancorp, a Florida corporation (“Bancorp”), Stifel Financial Corp., a Delaware corporation (“Parent”), and the individual stockholders of the Parent listed on Schedule I attached hereto (each a “Stockholder,” and collectively, the “Stockholders”).

Recitals:

WHEREAS, contemporaneously with the execution of this Agreement, Bancorp, Ryan Beck Holdings, Inc., a New Jersey corporation (the “Company”), Parent and SFRB Merger Sub, Inc., a New Jersey corporation wholly owned by Parent (“Merger Sub”), have entered into an Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”), pursuant to which Merger Sub will be merged with and into the Company with Merger Sub surviving such merger (the “Merger”); and

WHEREAS, the Stockholders are the beneficial owners (as defined in Rule l3d-3 under the Securities Exchange Act of 1934, as amended) of a number of outstanding shares of common stock, par value $.15 per share (the “Parent Common Stock”), of Parent as indicated on Schedule I attached hereto, which shares constitute an aggregate of 25.12% of the issued and outstanding shares of Parent Common Stock; and

 

WHEREAS, the Stockholders will derive significant value from the consummation of the Merger and the transactions contemplated by the Merger Agreement; and

 

WHEREAS, in consideration of the agreement of each of the parties to enter into the Merger Agreement and for other good and valuable consideration, receipt of which is hereby acknowledged, each Stockholder has agreed to vote all of the shares of Parent Common Stock beneficially owned by such Stockholder in (a) favor the Merger and (b) to approve the Merger Agreement and the transactions contemplated thereunder including, without limitation, the issuance of the Initial Share Consideration, the Warrant and the shares of Parent Common Stock issuable upon exercise thereof and shares of Parent Common Stock that may become issuable (and paid in the discretion of the Company) as Earn-Out Consideration and such other matters regarding the Merger so as to facilitate the consummation thereof; and

WHEREAS, capitalized terms used herein shall, unless this Agreement or the context requires otherwise, have the same meanings in this Agreement as in the Merger Agreement;

NOW, THEREFORE, in consideration of the foregoing and the mutual premises, representations, warranties, covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows:

	
             
 	
            1.
 	
            Voting Provisions.
 

(a)          Agreement to Vote Shares of Parent Common Stock.  Each Stockholder executing this Agreement hereby agrees that during the Term (as defined in Section 4 below) of 

 

 

this Agreement to vote or cause to be voted all shares of Parent Common Stock identified on Schedule I as owned of record and/or beneficially (as defined in Rule 13d-3 of the Exchange Act of 1934, as amended) by such Stockholder (with respect to each such Stockholder, such Stockholder’s “Shares”) (a) in favor the Merger and (b) to approve the Merger Agreement (to be executed and delivered concurrently herewith in substantially the form attached hereto) and the transactions contemplated thereunder including, without limitation, the issuance of the Initial Share Consideration, the Warrant and the shares of Parent Common Stock issuable upon exercise thereof and shares of Parent Common Stock that may become issuable (and paid in the discretion of the Company) as Earn-Out Consideration and such
other matters regarding the Merger so as to facilitate the consummation thereof, at every meeting of stockholders of Parent at which such matter is considered (and at every adjournment thereof) and in connection with any written consent of the stockholders of Parent with respect thereto.  Additionally, each such Stockholder agrees that it shall vote the Shares owned by such Stockholder against any action, transaction or agreement that would result in a breach in any respect of any covenant, representation or warranty or any other obligation or agreement of the Parent or Merger Sub under the Merger Agreement or this Agreement.

(b)          On or after the date of this Agreement and during the Term hereof, each Stockholder agrees not to transfer, sell, offer, exchange, pledge or otherwise dispose of or encumber any of such Shareholder’s Shares, unless the transferee agrees in writing, reasonably acceptable to Bancorp, to be bound by the terms of this Agreement.  

(c)           Each Stockholder hereby agrees that such Stockholder shall not enter into any agreement or understanding with any other Person the effect of which would be to violate the provisions and agreements contained in this Section 1.

2.            Other Proxies Revoked.  Each Stockholder represents and warrants that any proxies heretofore given in respect of such Stockholder's Shares are not irrevocable, and that all such proxies have been or are hereby revoked.

3.            Term of Agreement.  The term of this Agreement shall commence on the date of Parent’s execution and delivery of the Merger Agreement and shall remain in full force and effect until the earlier of (i) the day following the date on which a Parent Shareholder Meeting is held and at which meeting the stockholders of Parent consider approval of the matters set forth in Section 1(a) above (or any adjournment or postponement thereof), and (ii) the effective date of any termination of the Merger Agreement in accordance with Article 10 thereof (the “Term”), but in no event later than July 1, 2007.

4.            Representations and Warranties of each Stockholder.  Each Stockholder hereby severally, and not jointly, represents and warrants to the Bancorp (as to such Stockholder) as follows:

(a)          Authority, etc.  Such Stockholder has all necessary power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby by such Stockholder have been duly authorized by all necessary action on the part of such Stockholder and, assuming the due authorization, execution and delivery by 

 

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Bancorp, constitutes a legal, valid and binding obligation of such Stockholder, enforceable against such Stockholder in accordance with its terms.

(b)          Ownership of Shares.  Such Stockholder is the beneficial owner of the Shares listed beside such Stockholder's name on Schedule I attached hereto.  Such Stockholder has sole voting power and sole power to issue instructions with respect to the matters set forth in Section 1 hereof, sole power of disposition, sole power of conversion, sole power to agree to all of the matters set forth in this Agreement, in each case with respect to all of the Shares, with no limitations, qualifications or restrictions on such rights, subject only to applicable securities laws and the terms of this Agreement.

(c)          No Conflicts.  No filing with, and no permit, authorization, consent or approval of, any Governmental Authority is necessary for the execution of this Agreement by such Stockholder and the consummation by such Stockholder of the transactions contemplated hereby.  None of the execution and delivery of this Agreement by such Stockholder, the consummation by such Stockholder of the transactions contemplated hereby or compliance by such Stockholder with any of the provisions hereof shall (A) conflict with or result in any breach of any applicable documents to which such Stockholder is a party, or (B) violate any order, writ, injunction, decree, judgment, order, statute, rule or regulation applicable to such Stockholder.

(d)          No Encumbrances.  The Shares listed beside such Stockholder's name on Schedule I hereto and the certificates representing such Shares are now, and at all times during the term hereof will be, held by such Stockholder, or by a nominee or custodian for the benefit of such Stockholder, free and clear of all liens, claims, security interests, proxies, voting trusts or agreements, understandings or arrangements or any other encumbrances whatsoever, except for any such encumbrances or proxies arising hereunder.

(e)          Reliance by Bancorp.  Such Stockholder understands and acknowledges that Bancorp and the Company have entered into the Merger Agreement in reliance upon such Stockholder's execution and delivery of this Agreement.

5.            Covenants of Each Stockholder.  Each Stockholder covenants and agrees that, during the Term, such Stockholder shall not (i) directly or indirectly, transfer, sell, offer, exchange, pledge or otherwise dispose of or encumber any of such Shareholder’s Shares, unless the transferee agrees in writing, reasonably acceptable to Bancorp, to be bound by the terms of this Agreement; (ii) grant any proxies or powers of attorney, deposit any of the Shares into a voting trust or enter into a voting agreement with respect to any of the Shares; or (iii) take any action that would make any representation or warranty of such Stockholder contained herein untrue or incorrect or have the effect of preventing, disabling or delaying such Stockholder from performing
such Stockholder's obligations under this Agreement.

 

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            6.
 	
            Miscellaneous.
 

(a)          Further Assurances.  From time to time, at any other Party’s written request and without further consideration, each Party hereto shall execute and deliver such additional documents and take all such further lawful action as may be necessary or desirable to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement.

(b)          Entire Agreement.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all other prior agreements and understanding, both written and oral, between the parties with respect to the subject matter hereof.

(c)          Assignment.  This Agreement shall not be assigned by operation of law or otherwise without the prior written consent of the other party, provided that Bancorp may assign and transfer, at its sole discretion, its rights and obligations hereunder to any of its Affiliates.

(d)          Amendments, Waivers, Etc.  This Agreement may not be amended, changed, supplemented, waived or otherwise modified or terminated, except upon the execution and delivery of a written agreement executed by all of the relevant parties hereto, provided that Schedule I attached hereto may be supplemented by Parent by adding the name and other relevant information concerning any stockholder of Parent who agrees to be bound by the terms of this Agreement without the agreement of any other party hereto, and thereafter such added stockholder shall be treated as a “Stockholder” for all purposes of this Agreement.

(e)          Notices.  All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly received if so given) by hand delivery, telegram, telex or telecopy, or by mail (registered or certified mail, postage prepaid, return receipt requested) or by any courier service, such as Federal Express, providing proof of delivery.  All communications hereunder shall be delivered to the respective parties at the following addresses:

If to the Stockholders:

	
             
 	
            At the address set forth beside each Stockholder’s
name listed on Schedule I attached hereto
 

 

4

 

 

	
             
 	
            If to Parent:
 

 

Stifel Financial Corp.

501 N. Broadway

St. Louis, Missouri 63102

Attention:  Ronald J. Kruszewski, Chairman, President and CEO

Fax:  (314) 342-2115 

 

	
             
 	
            With a copy to:
 

 

Bryan Cave LLP

211 North Broadway, Suite 3600

St. Louis, Missouri 63102

Attention:  Robert J. Endicott, Esq.

Facsimile:  (314) 259-2020

 

	
             
 	
            If to Bancorp:
 

 

BankAtlantic Bancorp

2100 Cypress Creek Road

Fort Lauderdale, Florida 33309

Telephone:  (954) 940-5020

Fax:  (954) 940-5050

Attn: Alan B. Levan, Chairman

 

	
             
 	
            With a copy to:
 

 

Stearns Weaver Miller Weisler Alhadeff & Sitterson, P.A. 

150 W. Flagler Street, Suite 2200 

Miami, Florida 33130 

Attention:  Alison Miller, Esq.  

	
             
 	
            Jeffrey M. Oshinsky, Esq.
 

Facsimile: (305) 789-3395

 

or to such other address as the Person to whom notice is given may have previously furnished to the others in writing in the manner set forth above.

(f)           Severability.  Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and 

 

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enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

(g)          Specific Performance.  Each of the parties hereto recognizes and acknowledges that a breach by it of any covenants or agreements contained in this Agreement will cause the other party to sustain damages for which it would not have an adequate remedy at law for money damages, and therefore each of the parties hereto agrees that in the event of any such breach the aggrieved party shall be entitled to the remedy of specific performance of such covenants and agreements and injunctive and other equitable relief in addition to any other remedy to which it may be entitled, at law or in equity.

(h)          Remedies Cumulative.  All rights, powers and remedies provided under this Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not alternative, and the exercise of any thereof by any party shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.

(i)           No Waiver.  The failure of any party hereto to exercise any right, power or remedy provided under this Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other party hereto with its obligations hereunder, and any custom or practice of the parties at variance with the terms hereof shall not constitute a waiver by such party of its right to exercise any such or other right, power or remedy or to demand such compliance.

(j)           No Third Party Beneficiaries.  This Agreement is not intended to be for the benefit of, and shall not be enforceable by, any Person who or which is not a party hereto.

(k)          Governing Law.  This Agreement, and the legal relations between the parties hereto, shall be governed and construed in accordance with the laws of the State of Delaware.

(l)           Waiver of Jury Trial.  EACH OF THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER DOCUMENTS ENTERED INTO IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OF ANY PARTY.

(m)         Descriptive Headings.  The descriptive headings used herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement.

(n)          Counterparts.  This Agreement may be executed in two or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this 

 

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Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement.

7.            Termination.  This Agreement shall terminate, and neither the Parent, Bancorp, nor any Stockholder shall have any rights or obligations hereunder and this Agreement shall become null and void and have no effect upon the termination of the Merger Agreement in accordance with its terms, except nothing in this Section 7 shall relieve any party of liability for breach of this Agreement.

*  *  *  *  * 

 

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                IN WITNESS WHEREOF, each of Parent, Bancorp and the Stockholders identified on Schedule I hereto has caused this Voting Agreement to be duly executed as of the day and year first above written.

 

	
             
 	
            STIFEL FINANCIAL CORP. 

 

 

By:       /s/ Ronald Kruszewski                                         

Name:     Ronald Kruszewski
 

Title:       President and Chief Executive Officer                                                                                                                                                                    

 

 
 
	
             
 	
            BANKATLANTIC BANCORP

 

 

By:       /s/ Alan B. Levan                                         

Name:     Alan B. Levan
 

Title:       Chairman                                                                                                                                                                    

 

 
 

 

Stockholder Signatures appear on the following pages

 

 

 

 

8

 

 

 

	
             
 	
            THE WESTERN AND SOUTHERN LIFE INSURANCE COMPANY

 

 

By:       /s/ Robert L. Walker                                                                

Name: Robert L. Walker

Title:   Sr. Vice President & Chief Financial Officer

 

 
 
	
             
 	
             

 

By:       /s/ David J. Wuebbling                                                                

Name: David J. Wuebbling

Title:   Sr. Vice President

 

 
 
	
             
 	
             
 

 

 

9

 

 

	
             
 	
            /s/ Robert J. Baer                     

Robert J. Baer

 
 
	
             
 	
            /s/ Bruce Beda                         

Bruce Beda

 
 
	
             
 	
            /s/ Charles A. Dill                     

Charles A. Dill

 
 
	
             
 	
            /s/ John P. Dubinsky                

John P. Dubinsky

 
 
	
             
 	
            /s/ Richard F. Ford                    

Richard F. Ford

 
 
	
             
 	
            /s/ Fred Hanser                           

Fred Hanser

 
 
	
             
 	
            /s/ Richard Himelfarb                

Richard Himelfarb

 
 
	
             
 	
            /s/ Ronald Kruszewski               

Ronald Kruszewski

 
 
	
             
 	
            /s/ Robert E. Lefton                   

Robert E. Lefton

 
 
	
             
 	
            /s/ Scott McCuaig                     

Scott McCuaig

 
 
	
             
 	
            /s/ Thomas Mulroy                    

Thomas Mulroy

 
 
	
             
 	
            /s/ James Oates                         

James Oates

 
 
	
             
 	
            /s/ Joseph Sullivan                    

Joseph Sullivan

 
 
	
             
 	
            /s/ James Zemlyak                     

James Zemlyak

 

 

 

 
 

 

 

10

 

 

 

	
             
 	
            George H. Walker III Revocable Trust dated 3/8/2000

 

/s/ George H. Walker, III, trustee           

By: George H. Walker, III, trustee

 

George H.
Walker III SEP IRA, Stifel, Nicolaus and Company, custodian

 

/s/ George H. Walker, III                   

George H. Walker, III

 
 
	
             
 	
            /s/ David Sliney                                

David Sliney

 
 

 

11

 

 

SCHEDULE I

 

 

	
             

 

 

Name of Stockholder
 	
             

 

Number of Shares of Parent Common Stock Owned
 	
             

 

Notice Address
  
	
            The Western and Southern Life Insurance Company
 	
            1,359,749
 	
            400 Broadway

Cincinnati, OH  45202

Attn: Don Wuebbling
 
	
            Robert J. Baer

 
 	
            4,800
 	
            UniGroup, Inc.

One United Drive

Fenton, MO  63026
 
	
            Bruce Beda

 
 	
            16,295
 	
            Kilbourn Capital Management LLC

The John Hancock Center

875 North Michigan Ave., 31st Floor

Chicago, IL  60611
 
	
            Charles A. Dill

 
 	
            17,037
 	
            Gateway Associates

8000 Maryland Avenue, Suite 1190

St. Louis, MO  63105
 
	
            John P. Dubinsky

 
 	
            5,066
 	
            Westmoreland Associates, LLC

7777 Bonhomme, Suite 1210

Clayton, MO  63105
 
	
            Richard F. Ford

 
 	
            8,104
 	
            800 S. Hanley Road, #1D

St. Louis, MO 63105
 
	
            Fred Hanser

 
 	
            1,333
 	
            St. Louis Baseball Cardinals

250 Stadium Plaza

St. Louis, MO  63102-1722
 
	
            Richard Himelfarb

 
 	
            90,535
 	
            Stifel, Nicolaus & Company, Incorporated

100 Light Street

Baltimore, MD  21202
 

 

 

12

 

 

 

	
            Ronald Kruszewski

 
 	
            296,254
 	
            Stifel, Nicolaus & Company, Incorporated

One Financial Plaza

501 North Broadway

St. Louis, MO 63102
 
	
            Robert E. Lefton

 
 	
            16,310
 	
            Psychological Associates, Inc.

8112 Maryland, Suite 300

St. Louis, MO  63105
 
	
            Scott McCuaig

 
 	
            144,594
 	
            Stifel, Nicolaus & Company, Incorporated

One Financial Plaza

501 North Broadway

St. Louis, MO 63102
 
	
            Thomas Mulroy

 
 	
            90,000
 	
            Stifel, Nicolaus & Company, Incorporated

100 Light Street

Baltimore, MD  21202
 
	
            James Oates

 
 	
            66,198
 	
            Northeast Investment Management, Inc.

150 Federal Street, Suite 1000

Boston, MA 02110
 
	
            David Sliney
 	
            17,027
 	
            Stifel, Nicolaus & Company, Incorporated

One Financial Plaza

501 North Broadway

St. Louis, MO 63102
 
	
            Joseph Sullivan

 
 	
            90,405
 	
            Stifel, Nicolaus & Company, Incorporated

100 Light Street

Baltimore, MD  21202
 
	
            George H. Walker III Revocable Trust dated 3/8/2000

 

and

 

George H. Walker III SEP IRA, Stifel, Nicolaus and Company, custodian
 	
            630,812
 	
            19 Portland Place

St. Louis, MO  63108
 

	
            James Zemlyak
 	
            165,851
 	
            Stifel, Nicolaus & Company, Incorporated

One Financial Plaza

501 North Broadway

St. Louis, MO 63102
 

 

 

13EX-10.5

 

Exhibit 10.5

AGREEMENT

     THIS
AGREEMENT, made and entered into this the ______ day of
____________, 20___, by and between
Piedmont Natural Gas Company, Inc. (the “Company”) and
________________________ (the “Participant”).

WITNESSETH:

     WHEREAS, the Company’s Executive Long-Term Incentive Plan was adopted by the
Company’s Board of Directors on August 22, 2003, approved by the Shareholders of the Company at the
Annual Meeting of Shareholders held on February 27, 2004 and amended by the Company’s Board of
Directors on February 27, 2004 (the 2003 Long-Term Incentive Plan, as amended, being referred to
herein as the “Plan”); and

     WHEREAS, the Company’s Board of Directors on ____________,
20___, established a three-year performance period under the Plan beginning
November 1, 20___ (the “Performance Period”),
and the Company’s Board of Directors accepted the recommendation of its Compensation Committee (the
“Committee”) as to the Unit awards for the
____________ Performance Period; and

     WHEREAS,
the Participant has been awarded ____________ (____________) Units, as defined in Section 2.1
of the Plan, for the
____________ Performance Period.

     NOW, THEREFORE, in consideration of these premises and the mutual promises contained herein,
the parties hereto hereby agree as follows:

     1. Except as otherwise provided in this Agreement, the Participant’s award shall only be
distributed at the end of the Performance Period. The percentage of the Units awarded to the
Participant that shall be distributed to the Participant shall depend on the levels of financial

 

 

performance and other performance achieved during the Performance Period as set forth on
Exhibit A attached hereto. No distributions of Units shall be made with respect to a
particular measure of performance if the minimum percentage of the applicable measure of
performance is not achieved for the Performance Period as set forth on Exhibit A. The
financial performance levels achieved for each Performance Period and the percentage of Units to be
distributed shall be conclusively determined by the Board of Directors.

     2. The percentage of Units awarded to the Participant which the Participant shall become
entitled to receive based on the levels of performance (the “Retained Units”) shall be distributed
in the form of a combination of shares and cash consisting of a number of the Company’s common
shares (“Shares”) equal to fifty percent (50%) of the number of Retained Units and cash equal in
value to fifty percent (50%) of the number of Retained Units, with the Participant having the
option to elect a greater percent distribution in Shares. The Units awarded but which the
Participant does not become entitled to receive shall be cancelled. At the end of the Performance
Period the Participant shall receive payment for any Retained Units in the form of a lump sum
distribution of Shares and cash in accordance with the provisions of the Plan. Such lump sum
distribution of Shares and cash shall be paid within 2.5 months of the end of the Performance
Period.

     3. No award of Units to the Participant shall entitle the Participant to any right as a
stockholder of the Company.

     4. In case of the death of the Participant prior to the end of the Performance Period, the
Units awarded under this Plan shall be paid in accordance with Section 5.1 of the Plan. In the
event a Participant terminates employment prior to the end of any Performance Period under
circumstances entitling the Participant to a retirement pension or benefit under the Company’s

 

 

defined benefit pension plan or any other plan substituted for or supplementing said plan, the
number of Units awarded for the Performance Period shall be prorated to the end of the month in
which such termination occurs and distributed at the end of the Performance Period based upon the
Company’s performance for such Performance Period. Absence of the Participant prior to the end of
any Performance Period under circumstances entitling the Participant to Sickness Allowance and/or
Long Term Disability Benefits under the Company’s plan, or to a benefit of a similar type
substituted under or for or supplementing any such plan, or a benefit under a plan which the
Company determines to be comparable, shall not affect Units previously granted under the Plan.

     5. In the event of any other termination of employment or leave of absence prior to
the end of any Performance Period, all Units awarded to the Participant with respect to such
Performance Period shall be immediately forfeited and cancelled.

     6. All Units awarded to the Participant and not previously distributed in accordance with the
Plan shall be forfeited and cancelled in their entirety if the Participant is discharged for cause
or, without the consent of the Company, becomes associated with, employed by, renders services to,
consults with, acquires ownership of more than five percent (5%) of any class of stock of, or
acquires beneficial ownership of more than five percent (5%) of the earnings or profits of any
corporation, partnership, proprietorship, trust, or other entity which in the judgment of the
Company’s Board of Directors competes directly or through any affiliate with the Company or any
subsidiary in any of their lines of business.

     7. In the event of involuntary termination of employment of the Participant in connection
with, or at any time following, any Change of Control of the Company, the Participant shall be
entitled to the number of Units awarded for the Performance Period, reduced

 

 

in proportion to the number of months remaining in the Performance Period after the date of
termination. In connection with this Agreement, the term “Change of Control” shall mean (a) the
adoption of a plan of merger or consolidation of the Company with any other corporation or business
association of any type as a result of which the holders of the voting capital stock of the Company
as a group would receive less than 50% of the voting capital stock of the surviving or resulting
corporation; and (b) the acquisition of more than 20% of the voting capital stock of the Company by
any Person within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended. The term “Person” means any individual or a corporation, partnership, trust, limited
liability company, association, joint venture, pool, syndicate, sole proprietorship, unincorporated
organization or any other form of entity not specifically listed herein.

     8. The Participant’s award under the Plan may not be assigned or alienated.

     9. Neither the Plan, nor this Agreement, nor any action taken under the Plan or this Agreement
shall be construed as giving to the Participant the right to be retained in the employ of the
Company.

     10. The Company shall have the right to deduct from any distribution or payment in cash under
the Plan, and the Participant shall be required to pay to the Company, any federal, state or local
taxes required by law to be withheld with respect to such distribution or payment. The number of
Shares to be distributed to the Participant may be reduced by the number of Shares equivalent in
value to the cash necessary to pay any withholding tax where the cash to be distributed is not
sufficient to pay such tax, or the Participant may deliver to the Company cash sufficient to pay
such taxes.

     11. Any distribution of Shares may be delayed until the requirements of any applicable laws or
regulations or any stock exchange requirements are satisfied. The Shares

 

 

distributed to the Participant shall be subject to such restrictions and conditions on disposition
as counsel for the Company shall determine to be desirable or necessary under applicable law.

     12. Notwithstanding any other provision of the Plan, no distributions of Units shall be made
if, at the time a distribution would otherwise have been made (a) the regular quarterly dividend on
any outstanding common or preferred Shares of the Company has been omitted and not subsequently
paid or there exists any default in payment of dividends on any such outstanding Shares; (b)
estimated consolidated net income for the Company for the twelve (12) month period preceding the
month the distribution would otherwise have been made is less than the sum of the amount of the
awards eligible for distribution under the Plan in that month plus all dividends applicable to such
period on an accrual basis, either paid, declared or accrued at the most recently paid rate, on all
outstanding preferred and common Shares of the Company; or (c) the distribution would result in a
default in any agreement by which the Company is bound.

     13. The Participant may designate a beneficiary or beneficiaries to receive all or part of the
Units to be distributed to him/her under the Plan in case of death of the Participant. Any such
Units awarded under this Plan shall be distributed to the beneficiary (ies) designated in
Exhibit B that is incorporated herein for all purposes. If no beneficiary (ies) is
designated, such Units shall be paid to the estate of the Participant.

     14. The Participant acknowledges that the award of Units to him/her under the Plan is governed
by the terms of the Plan, as amended from time to time, and the terms of the Plan as they exist on
the date of this Agreement are incorporated into this Agreement in their entirety and made a part
hereof by reference. Unless otherwise defined herein, capitalized

 

 

terms used herein shall have the meaning set forth in the Plan. In the event of any conflict
between the terms of the Plan and this Agreement, the terms of the Plan shall control.

     15. Any claim under the Plan by the Participant or anyone claiming through the Participant
shall be presented to the Committee in accordance with Section 11.0 of the Plan.

     16. The Board of Directors shall have authority to administer and interpret the Plan and to
establish rules for its administration.

     17. If any provision or provisions of the Plan or this Award Agreement would cause any amount
to be includible in gross income of the Participant prior to the Company’s scheduled payment of
such amount to the Participant provided for herein or subject such Participant to penalties or
interest under Section 409A of the Internal Revenue Code of 1986, as amended, such provision or
provisions shall be interpreted or modified to the extent necessary so that no such amount will be
included in such Participant’s gross income prior to its scheduled payment by the Company provided
for herein and no such penalties or interest will be incurred.

     18. This Agreement shall be governed by the laws of the State of North Carolina to the extent
not preempted by applicable federal law.

IN WITNESS WHEREOF, the parties hereto have executed or caused this Agreement to be executed
in duplicate as of the date first above written.

	 	 	 	 	 
	 

	 	PIEDMONT NATURAL GAS COMPANY, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Chairman, President and Chief Executive Officer
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Participant

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