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NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE HOLDER, REASONABLY ACCEPTABLE TO THE CORPORATION, TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE CORPORATION.

 

COMMON STOCK PURCHASE WARRANT

 

SUPERTEL HOSPITALITY, INC.

 

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, J. William Blackham (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after March 2, 2015 (the “Initial Exercise Date”) and on or prior to the close of business on the Termination Date but not thereafter, to subscribe for and purchase from Supertel Hospitality, Inc., a Maryland corporation (the “Company”), 657,894 shares (subject to adjustment hereunder, the “Warrant Shares”) of Common Stock.  The purchase price of one share of Common Stock under this Warrant shall be equal to the applicable Exercise Price hereunder.

 

Section 1. Definitions.  In addition to the definitions provided throughout this Agreement and unless the context otherwise requires, the following terms, when capitalized, shall have the following meanings for the purposes of construing this Agreement:

 

(a) “Affiliates” means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such other person.  For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) when used with respect to any person, means the possession, directly or indirectly, of the power to cause the direction of management or policies of such person, whether through the ownership of voting securities by contract or otherwise.

 

(b) “Beneficial Ownership” has the meaning ascribed to such term in Article IX of the Amended and Restated Articles of Incorporation of the Company.

 

(c)  “Common Stock” means the common stock, $0.01 par value per share, of the Company.

 

(d) “Company” is defined in the first paragraph of the Warrant.

 

(e) “Constructive Ownership” has the meaning assigned to such term in Article IX of the Amended and Restated Articles of Incorporation of the Company.

 

(f) “Employment Agreement” means the Employment Agreement dated effective as of March 2, 2015 between Holder and the Company.

 

(g) “Exchange” means the Nasdaq Stock Market LLC (or, if the shares of Common Stock are not listed or admitted for trading on the Nasdaq Stock Market LLC, on the principal national securities exchange on which such securities are listed, or if not so listed, the OTC Bulletin Board (or any successors to any of the foregoing)).

 

(h) “Exercise Price” means the purchase price of one share of Common Stock upon exercise of this Warrant in whole or in part from time to time in the amount at the times as follows:

 

(i)           $1.52 for Warrant Shares purchased on or prior to March 17, 2015 provided Holder purchases at least one-third (1/3rd) but not more than one-half (1/2) of the Total Warrant Shares, and

 

(ii)           $1.92 for Warrant Shares purchased after March 17, 2015, provided, that Holder has purchased one-third (1/3rd) of the Warrant Shares on or prior to March 17, 2015.

 

(i) “Holder” is defined in the first paragraph of the Warrant.

 

(j) “Initial Exercise Date” is defined in the first paragraph of the Warrant.

 

(k) “Ownership Limit” has the meaning ascribed to such term in Article IX of the Amended and Restated Articles of Incorporation of the Company.

 

(l) “Preferred Shares” means the Company’s Series C Cumulative Convertible Preferred Stock.

 

(m) “RES” means Real Estate Strategies, L.P. or its Affiliates, including IRSA Inversiones Representaciones Sociedad Anonima, an Argentine sociedad anonima.

 

(n) “Termination Date” means the earlier of (i) March 17, 2015 if Holder fails to purchase at least one-third of the Total Warrant Shares on or before that date, or (ii) March 2, 2018 if Holder purchases at least one-third (1/3rd) of the Total Warrant Shares on or before March 17, 2015.

 

(o) “Total Warrant Shares” means the total number of Warrant Shares for which this Warrant may be exercised on the Initial Exercise Date without regard to the Ownership Limit.

 

(p) “Trading Day” means a day on which the Exchange is open for trading.

 

(q) “Warrant” is defined in the first paragraph of the Warrant.

 

(r) “Warrant Shares” is defined in the first paragraph of the Warrant.

 

Section 2. Exercise.

 

(a) Exercise of Warrant.  Subject to the Ownership Limit (set forth below), exercise of this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date, provided, that Holder has purchased at least one-third (1/3rd) of the Total Warrant Shares on or prior to March 17, 2015, by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Company) of a duly executed copy of the Notice of Exercise form annexed hereto.  Within five (5) Trading Days following the date of exercise as aforesaid and upon delivery by Holder of this Warrant and the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise (by wire transfer or cashier’s check drawn on a United States bank), the Company shall issue and cause to be delivered to Holder the certificate or certificates (or electronic equivalent thereof) representing the number of fully-paid and non-assessable Warrant Shares for which the Warrant is being exercised.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased and, following such partial exercise, the Company shall deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

(b) Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company.

 

(c) Share Ownership Limit.  The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, to the extent that, after giving effect to the exercise set forth on the applicable Notice of Exercise, the Holder would have Beneficial Ownership or Constructive Ownership of equity stock of the Company in excess of the Ownership Limit.

 

(d) Legend.  The Holder agrees that all certificates or other instruments representing the Warrant Shares will bear a legend substantially to the following effect:

 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

 

Section 3. Certain Adjustments.

 

(a) If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or makes a distribution to holders of any class or series of capital stock of the Company in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant or warrants issued prior to this Warrant), (ii) subdivides outstanding shares of Common Stock into a greater number of shares, (iii) combines its outstanding shares of Common Stock into a smaller number of shares, or (iv) issues any shares of its capital stock by reclassification of the Common Stock, then the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event.  Additionally, if the Exercise Price is adjusted pursuant to this Section 3(a), the number of Warrant Shares subject to this Warrant shall also be adjusted by multiplying the number of Warrant Shares then subject to this warrant by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding immediately after such event and which the denominator shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding immediately before such event.  Any adjustment made pursuant to this ‎Section 3(a) shall become effective immediately after the record date for the determination of shareholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.

 

(b) Whenever the Exercise Price is adjusted pursuant to any provision of this ‎Section 3, the Company shall promptly deliver to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.  Notwithstanding anything herein to the contrary, no adjustment of the Exercise Price shall be made pursuant to this Section 3 in an amount less than $.01 per share, and any such lesser adjustment shall be carried forward and shall be made at the time and together with the next subsequent adjustment which together with any adjustments so carried forward shall amount to $.01 per share or more.

 

Section 4. Miscellaneous.

 

(a) No Rights as Shareholder.  This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a shareholder of the Company.

 

(b) Loss, Theft, Destruction or Mutilation of Warrant.  The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

(c) Authorized Shares.  The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the exchange upon which the Common Stock may be listed.  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

(d) Governing Law and Forum.  This Warrant shall be governed by, and construed in accordance with, the internal laws of the State of Maryland without regard to the principles of conflicts of laws and shall be subject to the arbitration provision set forth in the Employment Agreement.

 

(e) Notices.  Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provision of the Employment Agreement.

 

(f) Successors and Assigns.  This Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder.

 

(g) Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

(h) Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

(i) Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

 

[SIGNATURE PAGE FOLLOWS]

 

  

  

  

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	  	
SUPERTEL HOSPITALITY, INC.

	  	  
	  	
/s/ James H. Friend

	  	
By:  James H. Friend

	  	
Title:  Chairman of the Board

	  	  
	
Acknowledged and accepted

 

 

	  
	
/s/ J. William Blackham

	  
	
J. William Blackham

 

	  
	  	  

 

  

  

  

NOTICE OF EXERCISE

 

TO:  SUPERTEL HOSPITALITY, INC.

 

(1) The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

The Warrant Shares shall be delivered to:

 

_______________________________

 

_______________________________

 

(2) Accredited Investor.  The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

The undersigned further requests that if the number of shares elected to be purchased herein shall not be all of the shares purchasable pursuant to the terms of the attached Warrant, that a new Warrant of like tenor for the balance of the shares purchasable hereunder be delivered to the undersigned.

 

 

 

J. William Blackham

 

Date:2015.01.31 Exhibit 10.1

Exhibit 10.1

PIEDMONT NATURAL GAS COMPANY
EMPLOYEE STOCK PURCHASE PLAN
Amended and Restated as of November 1, 2014

PIEDMONT NATURAL GAS COMPANY
EMPLOYEE STOCK PURCHASE PLAN
Amended and Restated as of November 1, 2014

Piedmont Natural Gas Company, Inc. (“Piedmont”) and its subsidiaries (Piedmont and its subsidiaries hereinafter referred to as the “Corporations”) established the Piedmont Natural Gas Company Employee Stock Purchase Plan (the “Plan”) on July 1, 1985 for the purpose of encouraging all employees of the Corporations (the “Employees”) to acquire a proprietary interest in the success of the Corporations and to remain in the employ of the Corporations.  Piedmont has previously amended and restated the Plan and now desires to further amend and restate the Plan, effective as of November 1, 2014.  

It is the intent of the Plan to qualify as an “Employee Stock Purchase Plan” within the meaning of Section 423 of the Internal Revenue Code of 1986, as amended, (hereinafter referred to as the “Code”) and the Plan is to be administered accordingly.

ARTICLE I
STOCK

1.01     Authorized.  An aggregate of 900,000 shares of Piedmont common stock (the “Stock”) have been authorized and reserved for issuance pursuant to the provisions of this Plan (600,000 initially authorized and 300,000 additional authorized in December 2009).  The Stock shall be subject to the purchase rights granted to the Employees by the Plan during the term of the Plan but shall also be subject to the provisions of Article VI.

1.02    Recapitalization.  The number of shares of Stock subject to this Plan shall be proportionately adjusted for any increase or decrease in the number of issued shares of common stock of Piedmont resulting from a subdivision or consolidation of shares of common stock or the payment of a stock dividend with respect to common stock (or any other increase or decrease in the number of such shares affected without receipt of consideration by Piedmont).

ARTICLE II
ELIGIBILITY AND PARTICIPATION

2.01    Eligibility.  Each Employee shall be eligible to participate in the Plan on the first day following the date on which the Employee completes thirty (30) days of continuous employment with the Corporations.  Notwithstanding the foregoing, the following Employees shall not be eligible to participate:

(1)    Employees whose customary employment is less than twenty (20) hours per week or five (5) months or less in any calendar year.

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(2)    Employees who immediately after the purchase of Stock pursuant to the Plan shall be considered a “Five Percent Shareholder” (as defined below) of Piedmont or its subsidiary corporation.  The term “subsidiary corporation” is defined in Section 425(e) and (f) of the Code.  Five Percent Shareholder means any individual who, immediately after the purchase of stock, owns or would be deemed to own more than five percent of the total combined voting power or value of all classes of stock of Piedmont.  For this purpose, (i) an individual shall be considered to own any stock owned (directly or indirectly) by or for his or her brothers, sisters, spouse, ancestors or lineal descendants and shall be considered to own proportionately any stock owned (directly or indirectly) by or for a corporation, partnership, estate or trust of which such individual is a shareholder, partner or beneficiary, and (ii) stock of Piedmont or any subsidiary corporation that an individual may purchase under outstanding options (whether or not granted under this Plan) shall be treated as stock owned by the individual.

2.02    Participation Upon Enrollment.  Employees who have completed the eligibility requirements shall become participants (“Participants”) by enrolling in the Plan through Piedmont’s Workday system.  The enrollment shall include:

(i)    designation of a regular payroll deduction of a percentage of compensation or an even dollar amount which designation shall not exceed six percent (6%) of the Participant’s compensation (excluding bonuses and overtime) or be less than $5.00 per payroll period;

(ii)    authorization to purchase Stock for the Participant on the Stock Purchase Date (as provided in Section 3.01) pursuant to the terms and provisions of the Plan; and

(iii)    such other information as the Benefit Plan Committee shall require and deem appropriate.

Enrollment  must be completed at least two (2) business days before the end of the payroll period for which the Employee elects to begin participation, otherwise it will become effective for the next succeeding payroll period.  An enrollment completed by an Employee shall be deemed as a continuing authorization for payroll deductions and stock purchases so long as the Plan remains in effect or until the Participant otherwise elects to cease participation or withdraws from the Plan.

2.03    Amendment to Plan Enrollment.  A Participant may amend his or her enrollment at any time through Piedmont’s Workday system.  Increases or decreases in the payroll deduction shall be effective for the payroll period in which the change was completed in Workday, provided, however, in the event the change was completed in Workday less than two (2) business days before the end of a payroll period, it will not be effective until the next succeeding payroll period.

2.04    Withdrawal From Participation.  A Participant may withdraw from the Plan at any time through Piedmont’s Workday system.  Withdrawals completed at least two (2) business days before the end of a payroll period will be effective for that payroll period.  For withdrawals 

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completed less than two (2) business days before the end of a payroll period, (a) the withdrawal will be effective the next succeeding payroll period and (b) if the payroll period in which the withdrawal was completed is the last complete payroll period in a Payroll Deduction Period, the Participant shall be deemed to have authorized the purchase of Stock as provided in Section 3.02 on the next Stock Purchase Date.  Termination of employment by reason of death or for any reason shall be deemed a withdrawal by the Participant as of the date his employment terminates.  Withdrawing Participants will be refunded the entire balance of the payroll deductions since the previous Stock Purchase Date.

2.05    Participation After Withdrawal.  An Employee who withdraws from the Plan may re-enter the Plan by enrolling through Workday as provided in Section 2.02.

ARTICLE III
PURCHASE OF STOCK

3.01    Accumulation of Funds.  Amounts elected by the Participant to be contributed to the Plan (in accordance with Section 2.02(a) above) shall be accumulated in a record-keeping account maintained by Piedmont.  The accumulated funds will be utilized only for the purchase of Stock, except for funds refunded to withdrawing Participants.  Funds will accumulate in each Participant’s account over four payroll deduction periods during the calendar year – November 1 to January 31, February 1 to April 30, May 1 to July 31 and August 1 to October 31 (“Payroll Deduction Periods”).  

3.02    Purchase of Stock.  The purchase of Stock for contributions made during a Payroll Deduction Period shall be made on the first business day of the next Payroll Deduction Period (the “Stock Purchase Date”).  Each Participant shall have purchased for his or her account as many shares, including partial shares, of Stock as his payroll deductions have accumulated during the relevant Payroll Deduction Period.  

3.03    Price.  The purchase price of the Stock as of the Stock Purchase Date shall be 95% of the average of the high and low trading prices as recorded on the Composite Tape of the New York Stock Exchange for the business day immediately preceding the Stock Purchase Date (“Stock Pricing Date”); provided, however, the purchase price shall not be less than 85% of the fair market value of such Stock as of the Stock Pricing Date.

3.04    Limitation.  In no event shall a Participant be permitted to purchase Stock under this Plan and in all other Employee Stock Purchase Plans (as defined in Section 423 of the Code) of Piedmont or any subsidiary corporation (as the term “subsidiary corporation” is defined in Section 425(e) and (f) of the Code) to accrue at a rate which exceeds $25,000 of the fair market value of such Stock (determined as of the Stock Pricing Date or time the Stock purchase right or option is granted, as applicable) for each calendar year which the Stock purchase right or option is outstanding at such time.  For purposes of this Section 3.04:

(i)    the right to purchase Stock under a Stock purchase right or option accrues when the right or option (or any portion thereof) first becomes exercisable during the calendar year,

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(ii)    the right to purchase Stock under a Stock purchase right or option accrues at a rate provided by the right or option but in no case may such rate exceed $25,000 of fair market value of such Stock (as determined at the time such right or option is granted) for any one calendar year, and

(iii)    a right to purchase Stock which has accrued pursuant to the Plan may not be carried over to any other Stock purchase right or option.

ARTICLE IV
ISSUANCE OF STOCK

Stock purchased pursuant to this Plan shall be deposited into the Participant’s Plan account.  The Stock purchased shall be deposited only in the Plan account in the name of the Participant, or if the Participant authorizes through Workday, the account of the Participant and spouse as joint tenants with or without the right of survivorship.

ARTICLE V
TRANSFER OR ASSIGNMENT OF EMPLOYEE’S RIGHT TO PURCHASE

Rights to purchase Stock granted to the Participant pursuant to this Plan shall be non-transferable and shall be exercisable only during the lifetime of the Participant while he or she is employed by the Corporations.  A Participant’s death terminates participation in the Plan as provided in Section 2.04 and the rights to purchase may not be exercised by the Participant’s legal representative.

ARTICLE VI
TERMINATION OR AMENDMENTS

6.01    Termination.  The Plan and all rights to purchase Stock as above provided may be terminated at any time by action of the Board of Directors of Piedmont.  If at any time any shares of Stock authorized for issuance under the Plan shall remain available for purchase, but not in sufficient number to satisfy all of the purchase requirements, the Benefit Plan Committee shall distribute such remaining Stock on a pro rata basis among the Participants.  Any excess accumulations of payroll deductions credited to the account of the Participant at the time of termination shall be refunded to the Participant.

6.02    Amendments.  The Board of Directors of Piedmont, acting through the Benefit Plan Committee, may amend the Plan in any respect whatsoever except that without the approval of shareholders of Piedmont, no such revision or amendment shall change the number of shares subject to the Plan or permit the granting of rights to purchase Stock under this Plan to persons other than employees of the Corporations.  Furthermore, the Plan may not, without the approval of shareholders, be amended in any manner that will cause the Plan to fail to meet the requirements of the provisions on employees stock purchase plans as set forth in Section 423 of the Code.

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ARTICLE VII
REPORTING CERTAIN STOCK RESALES

There are tax consequences if a participant disposes of any Stock within two (2) years from the Stock Purchase Date for that Stock (a “disqualifying disposition”).    The administrator of the Plan will advise the Corporations of any disqualifying dispositions, and the recaptured purchase price discount and any other resulting income deemed to have been earned as a result of the disqualifying disposition will be reported on the Participant’s W-2 form for the year of disposition.

ARTICLE VIII
RESTRICTIONS ON INTEREST

No interest shall be paid by the Corporations for the payroll deductions which are used to purchase Stock pursuant to Section 3.01 or returned pursuant to Section 2.04.

ARTICLE IX
PLAN ADMINISTRATION

9.01    Benefit Plan Committee.  The Plan shall be administered by the Piedmont Natural Gas Company, Inc. Benefit Plan Committee (the “Benefit Plan Committee”).  The Benefit Plan Committee shall interpret and construe the provisions of the Plan and its decision shall be final unless otherwise determined by the Board of Directors of Piedmont.  No member of the Board of Directors or the Benefit Plan Committee shall be liable for any actions or determination made in good faith with respect to the Plan or any rights to purchase granted thereunder.  The Benefit Plan Committee may be contacted through Piedmont’s Director – Compensation and Benefits.

9.02    Indemnification and Expenses.  In addition to all such rights of indemnification which the Committee members have, the members of the Committee shall be indemnified by the Corporations against the reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any actions taken or failure to act under or in connection with the Plan or any right to purchase granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by legal counsel selected by the Corporations or paid by them in satisfaction of a judgment in any action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that the Committee member is liable for gross negligence and misconduct in the performance of his or her duties.

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IN WITNESS WHEREOF, the Employer, duly authorized to execute this Plan on behalf of the Company as specified in this Plan, has caused its duly authorized officer to execute this Plan as of the 30th day of January, 2015.

PIEDMONT NATURAL GAS COMPANY, INC.

By: /s/ Kevin M. O’Hara
Kevin M. O’Hara
Senior Vice President – Chief Administrative Officer

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