Document:

Exhibit
10.23

 

 

 

 

STOCK
OPTION AGREEMENT

 

UNDER

 

TRANSACTION
SYSTEMS ARCHITECTS, INC.

2002
NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

(Amended
and restated effective March 9, 2004)

 

 

 

 

TABLE OF CONTENTS

 

	
  1

  	
  GRANT OF NON-QUALIFIED
  STOCK OPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  TERMS OF PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  EXERCISE PRICE

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  EXERCISE OF
  OPTION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1 

  	
  Time of Exercise of Option

  	
   

  
	
   

  	
  4.2 

  	
  Termination
  of Option

  	
   

  
	
   

  	
  4.3 

  	
  Effect of
  Optionee’s Disability or Death

  	
   

  
	
   

  	
  4.4 

  	
  Limitations on
  Exercise of Option

  	
   

  
	
   

  	
  4.5

  	
  Method of Exercise of
  Option

  	
   

  
	
   

  	
  4.6 

  	
  Parachute
  Limitations

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  TRANSFERABILITY OF OPTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  RIGHTS
  AS STOCKHOLDER

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  WITHHOLDING
  OF TAXES

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  DISCLAIMER
  OF RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  INTERPRETATION
  OF THIS OPTION AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  GOVERNING LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  BINDING EFFECT

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  NOTICE

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  ENTIRE
  AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNATURE PAGE

  	
   

  

 

 

This Stock Option Agreement (the “Option Agreement”)
is made as of _____________, by and
between Transaction Systems Architects, Inc., (“TSA”) a Delaware corporation
(the “Company”) and ____________, a
Non-Employee Director of the Company (the “Optionee”).  Capitalized terms used herein that are not
otherwise defined shall have the meaning ascribed to them in the Plan.

 

WHEREAS, the Board of Directors of the Company has
duly adopted and approved, the 2002 Non-Employee Director Stock Option Plan (the
“Plan”), which Plan authorizes the Company to grant to eligible individuals
options for the purchase of shares of the Company’s Class A Common Stock; and

 

WHEREAS, the Company has determined that it is
desirable and in its best interests to grant the Optionee, pursuant to the
Plan, an option to purchase a certain number of shares of Stock, in order to
provide the Optionee with an incentive to advance the interests of the Company,
all according to the terms and conditions set forth herein.

 

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

 

1                  GRANT OF NON-QUALIFIED
STOCK OPTION

 

The Company hereby grants to the Optionee the right
and option (the “Option”) to purchase from the Company, on the terms and
subject to the conditions set forth in the Plan and in this Option Agreement, _________
shares of Class A Common Stock (“the Stock”). 
The Date of Grant of this Option is _________.  This Option
shall not constitute an incentive stock option within the meaning of Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”).

 

2.                 TERMS OF PLAN

 

The Option granted pursuant to this Option Agreement
is granted subject to the terms and conditions set forth in the Plan, a copy of
which is enclosed with this Option Agreement. 
All terms and conditions of the Plan, as may be amended from time to
time, are hereby incorporated into this Option Agreement by reference and shall
be deemed to be part of this Option Agreement, without regard to whether such
terms and conditions (including, for example, provisions relating to certain
adjustments  in capitalization of the
Company) are not otherwise set forth in this Option Agreement.  In the event that there is any conflict or
inconsistency between the provisions of this Option Agreement and of the Plan,
the provisions of the Plan shall govern.

 

1

 

3.                 EXERCISE PRICE

 

The Exercise Price for the shares of Stock subject to
the Option granted by this Option Agreement is $__________ per share.

 

4.                 EXERCISE
OF OPTION

 

Except as otherwise provided herein, and subject to
the provisions of the Plan (including restrictions on the transferability of
the Option and special provisions relating to exercise or termination of the
Option following the Optionee’s termination of employment, disability, death or
retirement or certain changes in capitalization of the Company), the Option
granted pursuant to this Option Agreement shall be subject to exercise as
follows:

 

4.1              Time of Exercise of
Option

 

The Option will not be excercisable prior to the first
anniversary of the Option Grant Date. 
After the first anniversary of the Option Grant Date, the Option will be
fully vested and the Optionee may purchase up to 100% of the shares of Stock
available for purchase under the Option; provided, that no single exercise of
the Option shall be for less than 100 shares, unless at the time of the
exercise, the maximum number of shares available for purchase under the Option
is less than 100 shares.  In no event
shall the Option be exercised for a fractional share.

 

4.2              Acceleration
of Options

 

In accordance with the
provisions of the Plan, Options granted under this Option Agreement shall
become immediately exercisable upon the occurrence of a Change in Control of
the Corporation if the Optionee holding such Option is a Non-Employee Director
of the Company or any subsidiary of the Company on the date of the consummation
of such Change in Control.

 

4.3              Termination
of Option

 

The Option shall terminate upon the earlier of the
expiration of a period of (i) ten years from the Date of Grant, or (ii) one
month from the date of the Optionee’s termination of service as a Non-Employee
Director; provided, however, and subject to all Plan provisions relating
to termination, that if such termination of service as a Non-Employee Director
falls within the scope of one of the provisions of the Plan providing for an
extended exercise period in excess of one month, the Option shall terminate
upon the expiration of the extended period, as specified in such provision,
after the Optionee’s termination of service as a Non-Employee Director with the
Company or a subsidiary within which the Option is exercisable.

 

2

 

4.4              Effect
of Optionee’s Disability or Death

 

If the Optionee ceases to be a Non-Employee Director
of the Company or a subsidiary of the Company by reason of Disability, the
unexercised portion of any Option held by such Optionee at that time will
become immediately vested and will be exercisable for the shorter of one year
from the date on which the Optionee ceased to serve as a Non-Employee Director
or the remaining Option term.  If the
Optionee does not exercise the Option within the time specified, such Option
shall terminate.  The Company shall have
the authority to determine the date an Optionee ceases to serve as a
Non-Employee Director by reason of Disability.

 

If
the Optionee dies while serving as a Non-Employee Director of the Company or a
subsidiary of the Company (or dies within a period of one month after
termination of his service as a Non-Employee Director for any reason other than
Disability or within a period of one year after termination of his service as
Non-Employee Director by reason of Disability), the unexercised portion of any
Option held by such Optionee at the time of death will become immediately
vested and will be exercisable for the shorter of one year from the date of
such Optionee’s death, or the remaining Option term.  Such Option may be exercised by the executor
or administrator of the Optionee’s estate or by any person or persons who shall
have acquired the Option directly from the Optionee by bequest or
inheritance.  If the Option is not
exercised within the time specified, such Option shall terminate.

 

4.5              Limitations
on Exercise of Option

 

Notwithstanding the foregoing subsections, in no event
may the Option be exercised, in whole or in part, after ten years following the
Date of Grant, or after the occurrence of an event that results in termination
of the Option under the Plan.

 

4.6              Method
of Exercise of Option

 

Cash Exercise (to exercise and retain the Shares):  Subject to the terms and conditions of this
Option Agreement and the Plan, the Option may be exercised by delivering
written notice of exercise to the Company, at its principal office, addressed
to the attention of Stock Plan Administration, or to the agent/broker
designated by the Company, which notice shall specify the number of shares for
which the Option is being exercised, and shall be accompanied by payment in
full of the Exercise Price of the shares for which the Option is being
exercised plus the full amount of all applicable withholding taxes due on the
Option exercise.  Payment of the Exercise
Price for the shares of Stock purchased pursuant to the exercise of the Option
shall be made either in cash or by certified check payable to the order of the
Company.  If the person exercising the
Option is not the Optionee, such person shall also deliver with the notice of
exercise appropriate proof of his or her right to exercise the Option, as the
Company may require in its sole discretion. 
Promptly after exercise of the Option as provided for above, the Company
shall deliver to the person exercising the Option a certificate or certificates
for the shares of Stock being purchased.

 

Same-Day-Sale Exercise (to exercise and immediately
sell all the Shares): 
Subject to the terms and conditions of this Option Agreement and the
Plan, the Option may be exercised by delivering written notice of exercise to
the agent/broker designated by the

 

3

 

Company, which notice shall specify the number of
shares for which the Option is being exercised and irrevocable instructions to
promptly (1) sell all of the shares of Stock to be issued upon exercise and (2)
remit to the Company the portion of the sale proceeds sufficient to pay the
Exercise Price for the shares of Stock purchased pursuant to the exercise of
the Option and all applicable taxes due on the Option exercise.  The agent/broker shall request issuance of
the shares and immediately and concurrently sell the shares on the Optionee’s
behalf.  Payment of the Exercise Price
for the shares of Stock purchased pursuant to the exercise of the Option, any
brokerage fees, transfer fees, and all applicable taxes due on the Option
exercise, shall be deducted from the proceeds of the sale of the shares.  If the person exercising the Option is not
the Optionee, such person shall also deliver with the notice of exercise
appropriate proof of his or her right to exercise the Option, as the Company
may require in its sole discretion. 
Promptly after exercise of the Option as provided for above, the
agent/broker shall deliver to the person exercising the Option the net proceeds
from the sale of the shares of Stock being exercised and sold.

 

Sell-to-Cover Exercise (to exercise and immediately
sell a portion of the Shares):  Subject to the terms and conditions of this
Option Agreement and the Plan, the Option may be exercised by delivering
written notice of exercise to the agent/broker designated by the Company, which
notice shall specify the number of shares for which the Option is being
exercised and irrevocable instructions to promptly (1) sell the portion (which
must be a whole number) of the shares of Stock to be issued upon exercise
sufficient to generate proceeds to pay the Exercise Price for the shares of
Stock purchased pursuant to the exercise of the Option, any brokerage or transfer
fees, and all applicable taxes due on the Option exercise (collectively the “Exercise
Costs”) and (2) remit to the Company a sufficient portion of the sale proceeds
to pay the Exercise Price for the shares of Stock purchased pursuant to the
exercise of the Option and all applicable taxes due on the Option
exercise.  The agent/broker shall request
issuance of the shares and immediately and concurrently sell on the Optionee’s
behalf only such number of the Shares as is required to generate proceeds sufficient
to pay the Exercise Costs.  Promptly
after exercise of the Option as provided for above, the Company shall deliver
to the person exercising the Option a certificate for the shares of Stock
issued upon exercise which are not sold to pay the Exercise Costs.  Promptly after exercise of the Option as
provided for above, the agent/broker shall deliver to the person exercising the
Option any net proceeds from the sale of the Shares in excess of the Exercise
Costs.  If the person exercising the
Option is not the Optionee, such person shall also deliver with the notice of
exercise appropriate proof of his or her right to exercise the Option, as the
Company may require in its sole discretion.

 

The Option shall not be exercisable if and to the
extent the Company determines such exercise or method of exercise would violate
applicable securities laws, the rules and regulations of any securities
exchange or quotation system on which the Stock is listed, or the Company’s
policies and procedures.  An attempt to
exercise the Option granted hereunder other than as set forth above shall be
invalid and of no force and effect.

 

4.7              Parachute
Limitations

 

Notwithstanding any other provision of this Option
Agreement or the Plan or any other agreement, contract or understanding
heretofore or hereafter entered into by the 

 

4

 

Optionee with the Company (or any subsidiary or
affiliate thereof), except an agreement, contract or understanding hereafter
entered into that expressly modifies or excludes application of this subsection (the
“Other Agreements”), and notwithstanding any formal or informal plan or other
arrangements heretofore or hereafter adopted by the Company (or any such
subsidiary or affiliate) for the direct or indirect compensation of the
Optionee (including groups or classes of participants or beneficiaries of which
the Optionee is a member), whether or not such compensation is deferred, is in
cash, or is in the form of a benefit to or for the Optionee (the “Other Benefit
Plans”), the Optionee shall not have any right to exercise an Option or receive
any payment or other benefit under this Option Agreement, any Other Agreement,
or any Other Benefit Plan if such right to exercise, payment or benefit, taking
into account all other rights, payments or benefits to or for the Optionee
under this Option Agreement, all Other Agreements and all Other Benefit Plans,
would cause any right, payment or benefit to the Optionee under this Option
Agreement to be considered a “parachute payment” within the meaning of Section 280G(b)(2)
of the Code as then in effect (a “Parachute Payment”).  In the event that the receipt of any such
right to exercise or any other payment or benefit under this Option Agreement,
any Other Agreement or any Other Benefit Plan would cause the Optionee to be
considered to have received a Parachute Payment under this Agreement, then the
Optionee shall have the right, in the Optionee’s sole discretion, to designate
those rights, payments or benefits under this Option Agreement, any Other
Agreements, and/or any Other Benefit Plans, which should be reduced or
eliminated so as to avoid having the right, payment or benefit to the Optionee
under this Option Agreement be deemed to be a Parachute Payment.

 

5.                 TRANSFERABILITY OF
OPTIONS

 

During the lifetime of an Optionee, only such Optionee
(or, in the event of legal incapacity or incompetency, the Optionee’s guardian
or legal representative) may exercise the Option.  No Option shall be assignable or transferable
by the Optionee to whom it is granted, other than by will or the laws of
descent and distribution.

 

6.                 RIGHTS AS STOCKHOLDER

 

Neither the Optionee nor any executor, administrator,
distributee or legatee of the Optionee’s estate shall be, or have any of the
rights or privileges of, a stockholder of the Company in respect of any shares
of Stock issuable hereunder unless and until such shares have been fully paid
and certificates representing such shares have been endorsed, transferred and
delivered, and the name of the Optionee (or of such personal representative,
administrator, distributee or legatee of the Optionee’s estate) has been
entered as the stockholder or record on the books of the Company.

 

7.                 WITHHOLDING OF TAXES

 

The parties hereto recognize that the Company or a
subsidiary may be obligated to withhold federal, state and/or local income
taxes and Social Security taxes to the extent that the Optionee realizes
ordinary income in connection with the exercise of the Option or in connection
with a disposition of any shares of Stock acquired by exercise of the 

 

5

 

Option. The Optionee agrees that the Company or a
subsidiary may withhold amounts needed to cover such taxes from payments
otherwise due and owing to the Optionee, and also agrees that upon demand the
Optionee will promptly pay to the Company or a subsidiary having such
obligation any additional amounts as may be necessary to satisfy such
withholding tax obligation.  Such payment
shall be made in cash or by check payable to the order of the Company or a
subsidiary.

 

8.                 DISCLAIMER OF RIGHTS

 

No provision in this Option Agreement shall be
construed to confer upon the Optionee the right to be employed by the Company
or any subsidiary, or to interfere in any way with the right and authority of
the Company or any subsidiary either to increase or decrease the compensation
of the Optionee at any time, or to terminate any employment or other
relationship between the Optionee and the Company or any subsidiary.

 

9.                 INTERPRETATION OF THIS
OPTION AGREEMENT

 

All decisions and interpretations made by the Board or
the Compensation Committee thereof with regard to any question arising under
the Plan or this Option Agreement shall be binding and conclusive on the
Company and the Optionee and any other person entitled to exercise the Option
as provided for herein.

 

10.              GOVERNING LAW

 

This Option Agreement shall be governed by the laws of
the State of Delaware (but not including the choice of law rules thereof).

 

11.              BINDING EFFECT

 

Subject to all restrictions provided for in this
Option Agreement, the Plan, and by applicable law relating to assignment and
transfer of this Option Agreement and the Option provided for herein, this
Option Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, executors, administrators, successors and
assigns.

 

12.              NOTICE

 

Any notice hereunder by the Optionee to the Company
shall be in writing and shall be deemed duly given if mailed or delivered to
the Company at its principal office, addressed to the attention of Stock Plan
Administration or if so mailed or delivered to such other address as the
Company may hereafter designate by notice to the Optionee.  Any notice hereunder by the Company to the Optionee
shall be in writing and shall be 

 

6

 

deemed duly given if mailed or delivered to the
Optionee at the address specified below by the Optionee for such purpose, or if
so mailed or delivered to such other address as the Optionee may hereafter
designate by written notice given to the Company.

 

13.              ENTIRE AGREEMENT

 

This Option Agreement and the Plan together constitute
the entire agreement and supersede all prior understandings and agreements,
written or oral, of the parties hereto with respect to the subject matter
hereof.  Except for amendments to the
Plan incorporated into this Option Agreement by reference pursuant to Section 2
above, neither this Option Agreement nor any term hereof may be amended, waived,
discharged or terminated except by a written instrument signed by the Company
and the Optionee; provided, however, that the Company unilaterally may
waive any provision hereof in writing to the extent that such waiver does not
adversely affect the interests of the Optionee hereunder, but no such waiver
shall operate as or be construed to be a subsequent waiver of the same
provision or a waiver of any other provision hereof.

 

7

 

SIGNATURE
PAGE

 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Option Agreement, or caused this Option Agreement to be duly
executed on their behalf, as of the day and year first above written.

 

	
  Transaction
  Systems Architects, Inc.

  	
   

  	
  Optionee:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ADDRESS
  FOR NOTICE TO OPTIONEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number

  	
  Street

  	
  Apt.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  City

  	
  State

  	
  Zip
  Code

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SS#

  	
   

  	
  Hire
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DESIGNATED
  BENEFICIARY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Please Print
  Last Name, First Name MI

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Beneficiary’s
  Street Address

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  City

  	
  State

  	
  Zip
  Code

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Beneficiary’s
  Street Address

  
												

 

 

	
   

  	
   

  
	
   

  	
  SIGNATURE

  	
  DATE

  

 

After
completing this page please make a copy for your records and return it to Stock
Plan Administration Transaction Systems Architects Inc. 224 S. 108 Avenue Omaha
NE  68154

 

2002
Non-Employee Directors Stock Option Plan

	
   

  	
  Shares

  	
  $

  	
   

  	
  /Share Exercise Price

  	
   

  	
   

  	
  DateExhibit 10.aaaa

 

STOCK AWARD AGREEMENT

 

 

THIS STOCK
AWARD AGREEMENT (“Agreement”) is made and entered into as of the       
day of             ,
      by and between Cinergy Corp., a Delaware
corporation (the “Company”) and                            
(the “Director”).

 

                WHEREAS,
the Company has adopted the Cinergy Corp. 1996 Long-Term Incentive Compensation
Plan, as amended from time to time (the “Plan”), pursuant to which the Company’s
Board of Directors (the “Board”) has granted to the Director the right to
receive shares of Common Stock on the terms set forth in this Agreement; and

 

WHEREAS, the parties desire
to enter into this Agreement to set forth their understanding with respect to
the Common Stock described in this Agreement.

 

                NOW,
THEREFORE, in consideration of the recitals and the mutual agreements contained
in this Agreement, the parties agree as follows:

 

1. 
           Grant of Shares. The Company hereby grants to the
Director, effective as of           ,
        (the “Date of Grant”), in
consideration for service on the Board in          ,
a number (rounded up to the nearest whole number) of shares of Common Stock
(the “Shares”) equal to (i) $          
divided by (ii) the Fair Market Value of a share of Common Stock on the Date of
Grant. The grant of Shares shall be subject to and upon the terms, conditions
and restrictions set forth in this Agreement and the Plan.  The Shares shall be fully paid and
nonassessable.  Unless deferred as
described in Section 2 below, the Shares shall be delivered to the Director as
soon as administratively practicable following the Date of Grant.

2.             Deferral
Election.  Prior to the date on which
the Board has approved the grant of shares and contingent on such grant being
approved, the Director has been given the opportunity to elect to voluntarily
defer the receipt of all of the Shares pursuant to the terms of the Deferred
Compensation Agreement attached hereto as Attachment A.  In the event such a deferral election is
made, dividend equivalents shall be paid pursuant to the Plan in accordance
with the terms of the Deferred Compensation Agreement.

 

3.             Miscellaneous.  The provisions of the Plan
are incorporated into this Agreement by reference. Except as otherwise
expressly set forth in this Agreement, this Agreement shall be construed in
accordance with the provisions of the Plan and such regulations as may from
time to time be adopted by the Board.  In
the event of any conflict between the provisions of the Plan and the provisions
of this Agreement, the terms, conditions and provisions of the Plan shall
control, and this Agreement shall be deemed to be modified accordingly. Any
capitalized terms not otherwise defined in this Agreement shall have the
definitions set forth in the Plan.  The
Company shall make

 

 

1

 

 

reasonable efforts to comply with all
applicable federal and state securities laws; provided, however,
notwithstanding any other provision of this Agreement, the Company shall not be
obligated to deliver any Common Stock pursuant to this Agreement if the
delivery thereof would result in a violation of any such law, in which case the
Company shall pay to the Director a lump sum cash payment equal to the Fair
Market Value of the shares of Common Stock that are not so delivered, which
payment shall discharge all obligations of the Company to the Director under
this Agreement.  This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

 

                IN
WITNESS WHEREOF, this Agreement has been executed and delivered by the parties
as of the date first written above.

 

	
  DIRECTOR

  	
  CINERGY CORP.

  
	
   

  	
   

  
	
  Signature:
  

  	
   

  	
   

  	
  By:
  

  	
   

  
					

 

 

2

 

TEMPLATE — ATTACHMENT A

 

DEFERRED COMPENSATION AGREEMENT

 

THIS DEFERRED COMPENSATION AGREEMENT (“Agreement”) is made
and entered into as of the          
day of                  ,
           by and between
Cinergy Corp., a Delaware corporation (the “Company”) and                          
(the “Director”).

                WHEREAS, the Company and the
Director wish to provide for the deferral of certain shares of the Company’s
Common Stock that may be awarded to the Director by the Company (the “Award”)
in consideration for the Director’s service as a member of the Company’s Board
of Directors (“Board”) in         ,
which deferral election shall be contingent on the approval of the Award by the
Board.

                NOW THEREFORE, in consideration
of the premises and other good and valuable consideration, receipt of which is
hereby acknowledged, the Company and the Director hereby agree as follows:

1.             Account.  The Company shall establish a bookkeeping
account for the benefit of the Director (the “Account”).  The balance in the Account shall reflect the
shares of Common Stock credited by the Company under Section 2 hereof, and
adjustments thereto for dividend equivalents in accordance with Section 3
hereof.

2.             Credit
to Account.  Effective as of               ,
        , the Company shall credit to
the Account a number (rounded up to the nearest whole number) of shares of
Common Stock equal to (i) $            
divided by (ii) the Fair Market Value of a share of Common Stock on                ,
      .

3.             Adjustment
to Account.  The amount credited to
the Account, plus dividend equivalents thereon, shall be deemed to be invested
at all times in shares of Common Stock, in accordance with procedures
established from time to time by the Board or its delegate.  The Director acknowledges and agrees that the
Company is not and shall not be required to make any investment in Common Stock
in connection with this Agreement.  The
Board or its delegate may make or provide for such adjustments in the number of
shares of Common Stock credited to the Account as the Board or its delegate, in
its sole discretion exercised in good faith, may determine is equitably
required in order to prevent dilution or enlargement of the Director’s rights
that otherwise would result from (i) any stock dividend, stock split,
combination of shares, recapitalization, or other change in the capital
structure of the Company, (ii) any merger, consolidation, spin-off, split-off,
spin-out, split-up, reorganization, partial or complete liquidation, or other
distribution of assets or issuance of rights or warrants to purchase
securities, or (iii) any other corporate transaction or event having an effect
similar to any of the foregoing.  In the
event of any such transaction or event, the Board or its delegate, in its sole
discretion exercised in good faith, may provide, in substitution for

 

 

3

 

the Common
Stock credited to the Account, such alternative consideration as it may
determine to be equitable in the circumstances.

4.             Payments
to Director. The Director will be entitled to receive the shares of Common
Stock then-credited to his Account as soon as administratively practicable
following the date on which the Director ceases to be a director of the
Company.  The lump sum payment shall be
made in the form of shares of Common Stock, and cash in lieu of any fractional
share.  The payment to the Director of a
single lump sum payment shall discharge all obligations of the Company to the
Director under this Agreement. 
Notwithstanding the above, the date on which the Director ceases to be a
director of the Company shall be deemed to have not occurred for purposes of
this Agreement unless such cessation constitutes a “separation from service”
within the meaning of Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), and any regulations promulgated thereunder.

                5.             Death.  If the Director dies before the balance of
his Account has been paid to him, the balance of the Account shall be paid to
the Director’s beneficiary in a single lump sum payment as soon as
administratively practicable following the date of the Director’s death. The
lump sum payment shall be made in the form of shares of Common Stock, and cash
in lieu of any fractional share.  The
Director’s “beneficiary” is the person or persons, including one or more
trusts, designated by the Director to receive payment of the Account in the
event of the death of the Director on a form provided by the Company.  If the Director fails to designate a beneficiary
or designates a beneficiary who fails to survive him, the Director’s
beneficiary shall be his estate.

 

6.             Administration. 
The Company, through the Board or its delegate, shall be responsible
for the general administration of the Agreement and for carrying out the
provisions hereof.  The Board or its
delegate shall have all such powers as may be necessary to carry out the
provisions of the Agreement, including the power to (i) resolve all questions
pertaining to claims for benefits and procedures for claim review, (ii) resolve
all other questions arising under the Agreement, including any factual
questions and questions of construction, and (iii) take such further
action as the Company shall deem advisable in the administration of the
Agreement.  The actions taken and the
decisions made by the Board or its delegate hereunder shall be final and
binding upon all interested parties.  Any
capitalized terms not otherwise defined in this Agreement shall have the
definitions set forth in the Award.

 

7.             Account Payable. 
All payments under this Agreement shall be paid by the Company out of
its general assets.  The Director’s
rights to receive payments under this Agreement shall be no greater than that
of an unsecured general creditor of the Company.

 

8.             Nonassignment of Benefits.  No amount payable under this Agreement may be
assigned, transferred, encumbered or subject to any legal process for the
payment of any claim against the Director or his or her beneficiary.

 

 

4

 

 

9.             Amendment and Termination.   This
Agreement may be amended from time to time by a writing signed by both parties
hereto which makes specific reference to this Agreement.

 

10.           Governing Law.  
This Agreement and the Director’s rights under it shall be construed
and determined in accordance with the laws of the state of Delaware.

 

11.           Agreement Binding on Successors.  This Agreement shall be binding upon the
successors and assigns of the parties hereto.

 

12.           No Funding Required.  The Director acknowledges that the Company
shall have no obligation to set aside any assets to fund its obligations under
this Agreement.

 

13.           Compliance with Law.  The Company shall make
reasonable efforts to comply with all applicable federal and state securities
laws; provided, however, notwithstanding any other provision of
this Agreement, the Company shall not be obligated to issue any Common Stock
pursuant to this Agreement if the issuance thereof would result in a violation
of any such law, in which case the Company shall satisfy its obligations
hereunder in cash rather than shares of Common Stock.  This Agreement shall be construed,
administered and governed in a manner that is consistent with, and that
satisfies the requirements of, Section 409A of the Code and any regulations
promulgated thereunder, so that taxation to the Director is deferred under this
Agreement until distribution as provided hereunder.

 

14.           Tax Withholding. 
To the extent required by law, the Company will withhold all applicable
income and other taxes from amounts otherwise payable under this Agreement.

 

                IN
WITNESS WHEREOF, this Agreement has been executed and delivered by the parties
as of the date first written above.

 

	
  DIRECTOR

  	
  CINERGY CORP.

  
	
   

  	
   

  
	
  Signature:
  

  	
   

  	
   

  	
  By:
  

  	
   

  
	
   

  	
   

  
					

 

 

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}]]