Document:

Exhibit 4.1

 

EXECUTION COPY

 

DUKE ENERGY CORPORATION

 

TO

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

 

Trustee

 

 

Seventh Supplemental Indenture

Dated as of August 16, 2012

 

 

$700,000,000 1.625% SENIOR NOTES DUE 2017

$500,000,000 3.050% SENIOR NOTES DUE 2022

 

 

TABLE OF CONTENTS(1)

 

	
ARTICLE I
    	
 
    
	
 
    	
 
    
	
1.625%   SENIOR NOTES DUE 2017
    	
 
    
	
 
    	
 
    
	
Section 1.01.
    	
Establishment
    	
1
    
	
Section 1.02.
    	
Definitions
    	
2
    
	
Section 1.03.
    	
Payment of Principal and Interest
    	
2
    
	
Section 1.04.
    	
Denominations
    	
3
    
	
Section 1.05.
    	
Global Securities
    	
3
    
	
Section 1.06.
    	
Redemption
    	
4
    
	
Section 1.07.
    	
Paying Agent
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    	
 
    
	
 
    	
 
    
	
3.050%   SENIOR NOTES DUE 2022
    	
 
    
	
 
    	
 
    
	
Section 2.01.
    	
Establishment
    	
5
    
	
Section 2.02.
    	
Definitions
    	
5
    
	
Section 2.03.
    	
Payment of Principal and Interest
    	
6
    
	
Section 2.04.
    	
Denominations
    	
7
    
	
Section 2.05.
    	
Global Securities
    	
7
    
	
Section 2.06.
    	
Redemption
    	
7
    
	
Section 2.07.
    	
Paying Agent
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    	
 
    
	
 
    	
 
    
	
MISCELLANEOUS   PROVISIONS
    	
 
    
	
 
    	
 
    
	
Section 3.01.
    	
Recitals by the Corporation
    	
9
    
	
Section 3.02.
    	
Ratification and Incorporation of Original Indenture
    	
9
    
	
Section 3.03.
    	
Executed in Counterparts
    	
9
    
	
 
    	
 
    	
 
    
	
Exhibit A — Form of 1.625% Senior Note   Due 2017
    	
 
    
	
Exhibit B — Certificate of Authentication
    	
 
    
	
Exhibit C — Form of 3.050% Senior Note   Due 2022
    	
 
    
	
Exhibit D — Certificate of Authentication
    	
 
    

 

(1)  This Table of Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions.

 

i

 

THIS SEVENTH SUPPLEMENTAL INDENTURE is made as of the 16th day of August 2012, by and between DUKE ENERGY CORPORATION, a Delaware corporation, having its principal office at 550 South Tryon Street, Charlotte, North Carolina 28202-1803 (the “Corporation”), and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), a national banking association, as Trustee (herein called the “Trustee”).

 

WITNESSETH:

 

WHEREAS, the Corporation has heretofore entered into an Indenture, dated as of June 3, 2008 (the “Original Indenture”), with The Bank of New York Mellon Trust Company, N.A., as Trustee;

 

WHEREAS, the Original Indenture is incorporated herein by this reference and the Original Indenture, as it may be amended and supplemented to the date hereof, including by this Seventh Supplemental Indenture, is herein called the “Indenture”;

 

WHEREAS, under the Indenture, a new series of Securities may at any time be established in accordance with the provisions of the Indenture and the terms of such series may be described by a supplemental indenture executed by the Corporation and the Trustee;

 

WHEREAS, the Corporation hereby proposes to create under the Indenture two additional series of Securities;

 

WHEREAS, additional Securities of other series hereafter established, except as may be limited in the Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Indenture as at the time supplemented and modified; and

 

WHEREAS, all conditions necessary to authorize the execution and delivery of this Seventh Supplemental Indenture and to make it a valid and binding obligation of the Corporation have been done or performed.

 

NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I

 

1.625% SENIOR NOTES DUE 2017

 

Section 1.01.                             Establishment.  There is hereby established a new series of Securities to be issued under the Indenture, to be designated as the Corporation’s 1.625% Senior Notes due 2017 (the “2017 Notes”).

 

There are to be authenticated and delivered $700,000,000 principal amount of the 2017 Notes, and no further 2017 Notes shall be authenticated and delivered except as provided by Section 304, 305, 306, 906 or 1106 of the Original Indenture and the last paragraph of Section 301 thereof.  The 2017 Notes shall be issued in fully registered form without coupons.

 

 

The 2017 Notes shall be in substantially the form set out in Exhibit A hereto, and the form of the Trustee’s Certificate of Authentication for the 2017 Notes shall be in substantially the form set forth in Exhibit B hereto.

 

Each 2017 Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for.

 

Section 1.02.                             Definitions.  The following defined terms used in this Article I shall, unless the context otherwise requires, have the meanings specified below for purposes of the 2017 Notes.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Original Indenture.

 

“Business Day” means any day other than a Saturday or Sunday that is neither a Legal Holiday nor a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to close, or a day on which the Corporate Trust Office is closed for business.

 

“Interest Payment Date” means each February 15 and August 15 of each year, commencing February 15, 2013.

 

“Legal Holiday” means any day that is a legal holiday in New York, New York.

 

“Original Issue Date” means August 16, 2012.

 

“Regular Record Date” means, with respect to each Interest Payment Date, the close of business on the 15th calendar day prior to such Interest Payment Date (whether or not a Business Day).

 

“Stated Maturity” means August 15, 2017.

 

Section 1.03.                             Payment of Principal and Interest.  The principal of the 2017 Notes shall be due at Stated Maturity (unless earlier redeemed).  The unpaid principal amount of the 2017 Notes shall bear interest at the rate of 1.625% per annum until paid or duly provided for, such interest to accrue from August 16, 2012 or from the most recent Interest Payment Date to which interest has been paid or duly provided for.  Interest shall be paid semi-annually in arrears on each Interest Payment Date to the Person or Persons in whose name the 2017 Notes are registered on the Regular Record Date for such Interest Payment Date; provided that interest payable at the Stated Maturity or on a Redemption Date as provided herein shall be paid to the Person to whom principal is payable.  Any such interest that is not so punctually paid or duly provided for shall forthwith cease to be payable to the Holders on such Regular Record Date and may either be paid to the Person or Persons in whose name the 2017 Notes are registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee (“Special Record Date”), notice whereof shall be given to Holders of the 2017 Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on

 

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which the 2017 Notes may be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Original Indenture.

 

Payments of interest on the 2017 Notes shall include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for the 2017 Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on the 2017 Notes is not a Business Day, then payment of the interest payable on such date shall be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay) with the same force and effect as if made on the date the payment was originally payable.

 

Payment of principal of, premium, if any, and interest on the 2017 Notes shall be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of principal of, premium, if any, and interest on 2017 Notes represented by a Global Security shall be made by wire transfer of immediately available funds to the Holder of such Global Security, provided that, in the case of payments of principal and premium, if any, such Global Security is first surrendered to the Paying Agent.  If any of the 2017 Notes are no longer represented by a Global Security, (i) payments of principal, premium, if any, and interest due at the Stated Maturity or earlier redemption of such 2017 Notes shall be made at the office of the Paying Agent upon surrender of such 2017 Notes to the Paying Agent and (ii) payments of interest shall be made, at the option of the Corporation, subject to such surrender where applicable, (A) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (B) by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.

 

Section 1.04.                             Denominations.  The 2017 Notes shall be issued in denominations of $2,000 or any integral multiple of $1,000 in excess thereof.

 

Section 1.05.                             Global Securities.  The 2017 Notes shall initially be issued in the form of one or more Global Securities registered in the name of the Depositary (which initially shall be The Depository Trust Company) or its nominee.  Except under the limited circumstances described below, 2017 Notes represented by such Global Security or Global Securities shall not be exchangeable for, and shall not otherwise be issuable as, 2017 Notes in definitive form.  The Global Securities described in this Article I may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee.

 

A Global Security representing the 2017 Notes shall be exchangeable for 2017 Notes registered in the names of persons other than the Depositary or its nominee only if (i) the Depositary notifies the Corporation that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by the Corporation within 90 days of receipt by the Corporation of such notification, or if at any time the Depositary ceases to be a clearing agency registered under the Exchange Act at a time when the Depositary is required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Corporation within 90 days after it becomes aware of such cessation, (ii)

 

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an Event of Default has occurred and is continuing with respect to the 2017 Notes and beneficial owners of a majority in aggregate principal amount of the 2017 Notes represented by Global Securities advise the Depositary to cease acting as Depositary, or (iii) the Corporation in its sole discretion, and subject to the procedures of the Depositary, determines that such Global Security shall be so exchangeable.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for 2017 Notes registered in such names as the Depositary shall direct.

 

Section 1.06.                             Redemption.  The 2017 Notes shall be redeemable, in whole or in part at any time and from time to time, at the option of the Corporation, on any date (a “Redemption Date”), at a redemption price equal to the greater of (i) 100% of the principal amount of the 2017 Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to such Redemption Date) discounted to such Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 15 basis points, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to such Redemption Date.

 

For purposes of this Section 1.06, the following terms have the following meanings:

 

“Treasury Rate” means, with respect to any Redemption Date for the 2017 Notes, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.  The Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the 2017 Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such 2017 Notes.

 

“Quotation Agent” means a Reference Treasury Dealer appointed by the Corporation.

 

“Comparable Treasury Price” means, with respect to any Redemption Date for the 2017 Notes, (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if fewer than four such Reference Treasury Dealer Quotations are obtained, the average of all such Reference Treasury Dealer Quotations.

 

“Reference Treasury Dealer” means each of BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, plus one other financial institution appointed by the Corporation at the time of any redemption of the 2017 Notes or their respective affiliates which are primary U.S. Government securities dealers in the United States (a “Primary Treasury Dealer”), and their respective successors; provided, however, that if any of the foregoing or their affiliates or

 

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successors ceases to be a Primary Treasury Dealer, the Corporation will substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the 2017 Notes, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

The Corporation shall notify the Trustee of the redemption price with respect to any redemption of the 2017 Notes promptly after the calculation thereof.  The Trustee shall not be responsible for calculating said redemption price.

 

If less than all of the 2017 Notes are to be redeemed, the Trustee shall select the 2017 Notes or portions of 2017 Notes to be redeemed by such method as the Trustee shall deem fair and appropriate.  The Trustee may select for redemption 2017 Notes and portions of 2017 Notes in amounts of $2,000 or any integral multiple of $1,000 in excess thereof.

 

The 2017 Notes shall not have a sinking fund.

 

Section 1.07.                             Paying Agent.  The Trustee shall initially serve as Paying Agent with respect to the 2017 Notes, with the Place of Payment initially being the Corporate Trust Office.

 

ARTICLE II

 

3.050% SENIOR NOTES DUE 2022

 

Section 2.01.                             Establishment.  There is hereby established a new series of Securities to be issued under the Indenture, to be designated as the Corporation’s 3.050% Senior Notes due 2022 (the “2022 Notes”).

 

There are to be authenticated and delivered $500,000,000 principal amount of the 2022 Notes, and no further 2022 Notes shall be authenticated and delivered except as provided by Section 304, 305, 306, 906 or 1106 of the Original Indenture and the last paragraph of Section 301 thereof.  The 2022 Notes shall be issued in fully registered form without coupons.

 

The 2022 Notes shall be in substantially the form set out in Exhibit C hereto, and the form of the Trustee’s Certificate of Authentication for the 2022 Notes shall be in substantially the form set forth in Exhibit D hereto.

 

Each 2022 Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for.

 

Section 2.02.                             Definitions.  The following defined terms used in this Article II shall, unless the context otherwise requires, have the meanings specified below for purposes of the

 

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2022 Notes.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Original Indenture.

 

“Business Day” means any day other than a Saturday or Sunday that is neither a Legal Holiday nor a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to close, or a day on which the Corporate Trust Office is closed for business.

 

“Interest Payment Date” means each February 15 and August 15 of each year, commencing February 15, 2013.

 

“Legal Holiday” means any day that is a legal holiday in New York, New York.

 

“Original Issue Date” means August 16, 2012.

 

“Regular Record Date” means, with respect to each Interest Payment Date, the close of business on the 15th calendar day prior to such Interest Payment Date (whether or not a Business Day).

 

“Stated Maturity” means August 15, 2022.

 

Section 2.03.                             Payment of Principal and Interest.  The principal of the 2022 Notes shall be due at Stated Maturity (unless earlier redeemed).  The unpaid principal amount of the 2022 Notes shall bear interest at the rate of 3.050% per annum until paid or duly provided for, such interest to accrue from August 16, 2012 or from the most recent Interest Payment Date to which interest has been paid or duly provided for.  Interest shall be paid semi-annually in arrears on each Interest Payment Date to the Person or Persons in whose name the 2022 Notes are registered on the Regular Record Date for such Interest Payment Date; provided that interest payable at the Stated Maturity or on a Redemption Date as provided herein shall be paid to the Person to whom principal is payable. Any such interest that is not so punctually paid or duly provided for shall forthwith cease to be payable to the Holders on such Regular Record Date and may either be paid to the Person or Persons in whose name the 2022 Notes are registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee (“Special Record Date”), notice whereof shall be given to Holders of the 2022 Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the 2022 Notes may be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Original Indenture.

 

Payments of interest on the 2022 Notes shall include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for the 2022 Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on the 2022 Notes is not a Business Day, then payment of the interest payable on such date shall be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay) with the same force and effect as if made on the date the payment was originally payable.

 

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Payment of principal of, premium, if any, and interest on the 2022 Notes shall be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. Payments of principal of, premium, if any, and interest on 2022 Notes represented by a Global Security shall be made by wire transfer of immediately available funds to the Holder of such Global Security, provided that, in the case of payments of principal and premium, if any, such Global Security is first surrendered to the Paying Agent.  If any of the 2022 Notes are no longer represented by a Global Security, (i) payments of principal, premium, if any, and interest due at the Stated Maturity or earlier redemption of such 2022 Notes shall be made at the office of the Paying Agent upon surrender of such 2022 Notes to the Paying Agent and (ii) payments of interest shall be made, at the option of the Corporation, subject to such surrender where applicable, (A) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (B) by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.

 

Section 2.04.                             Denominations.  The 2022 Notes shall be issued in denominations of $2,000 or any integral multiple of $1,000 in excess thereof.

 

Section 2.05.                             Global Securities.  The 2022 Notes shall initially be issued in the form of one or more Global Securities registered in the name of the Depositary (which initially shall be The Depository Trust Company) or its nominee.  Except under the limited circumstances described below, 2022 Notes represented by such Global Security or Global Securities shall not be exchangeable for, and shall not otherwise be issuable as, 2022 Notes in definitive form.  The Global Securities described in this Article 2 may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee.

 

A Global Security representing the 2022 Notes shall be exchangeable for 2022 Notes registered in the names of persons other than the Depositary or its nominee only if (i) the Depositary notifies the Corporation that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by the Corporation within 90 days of receipt by the Corporation of such notification, or if at any time the Depositary ceases to be a clearing agency registered under the Exchange Act at a time when the Depositary is required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Corporation within 90 days after it becomes aware of such cessation, (ii) an Event of Default has occurred and is continuing with respect to the 2022 Notes and beneficial owners of a majority in aggregate principal amount of the 2022 Notes represented by Global Securities advise the Depositary to cease acting as Depositary, or (iii) the Corporation in its sole discretion, and subject to the procedures of the Depositary, determines that such Global Security shall be so exchangeable.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for 2022 Notes registered in such names as the Depositary shall direct.

 

Section 2.06.                             Redemption.  At any time before May 15, 2022, the 2022 Notes shall be redeemable, in whole or in part and from time to time, at the option of the Corporation, on any date (a “Redemption Date”), at a redemption price equal to the greater of (i) 100% of the

 

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principal amount of the 2022 Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to such Redemption Date) discounted to such Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 25 basis points, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to such Redemption Date.

 

At any time on or after May 15, 2022, the 2022 Notes shall be redeemable, in whole or in part and from time to time, at the option of the Corporation, at a redemption price equal to 100% of the principal amount of the 2022 Notes being redeemed plus accrued and unpaid interest on the principal amount being redeemed to such Redemption Date.

 

For purposes of the first paragraph of this Section 2.06, the following terms have the following meanings:

 

“Treasury Rate” means, with respect to any Redemption Date for the 2022 Notes, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.  The Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the 2022 Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such 2022 Notes.

 

“Quotation Agent” means a Reference Treasury Dealer appointed by the Corporation.

 

“Comparable Treasury Price” means, with respect to any Redemption Date for the 2022 Notes, (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if fewer than four such Reference Treasury Dealer Quotations are obtained, the average of all such Reference Treasury Dealer Quotations.

 

“Reference Treasury Dealer” means each of BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, plus one other financial institution appointed by the Corporation at the time of any redemption of the 2022 Notes or their respective affiliates which are primary U.S. Government securities dealers in the United States (a “Primary Treasury Dealer”), and their respective successors; provided, however, that if any of the foregoing or their affiliates or successors ceases to be a Primary Treasury Dealer, the Corporation will substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the 2022 Notes, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in

 

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each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

The Corporation shall notify the Trustee of the redemption price with respect to any redemption of the 2022 Notes occurring before May 15, 2022 promptly after the calculation thereof.  The Trustee shall not be responsible for calculating said redemption price.

 

If less than all of 2022 the Notes are to be redeemed, the Trustee shall select the 2022 Notes or portions of 2022 Notes to be redeemed by such method as the Trustee shall deem fair and appropriate.  The Trustee may select for redemption 2022 Notes and portions of 2022 Notes in amounts of $2,000 or any integral multiple of $1,000 in excess thereof.

 

The 2022 Notes shall not have a sinking fund.

 

Section 2.07.                          Paying Agent.  The Trustee shall initially serve as Paying Agent with respect to the 2022 Notes, with the Place of Payment initially being the Corporate Trust Office.

 

ARTICLE III

 

MISCELLANEOUS PROVISIONS

 

Section 3.01.                          Recitals by the Corporation.  The recitals in this Seventh Supplemental Indenture are made by the Corporation only and not by the Trustee, and all of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of the 2017 Notes and the 2022 Notes and of this Seventh Supplemental Indenture as fully and with like effect as if set forth herein in full.

 

Section 3.02.                          Ratification and Incorporation of Original Indenture.  As supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture and this Seventh Supplemental Indenture shall be read, taken and construed as one and the same instrument.

 

Section 3.03.                          Executed in Counterparts.  This Seventh Supplemental Indenture may be executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.

 

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IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name and behalf by its duly authorized officer, all as of the day and year first above written.

 

	
 
    	
Duke   Energy Corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
  /s/   W. Bryan Buckler
    
	
 
    	
Name:   W. Bryan Buckler
    
	
 
    	
Title:   Assistant Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
The   Bank of New York Mellon Trust Company, 
    
	
 
    	
N.A.,   as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
  /s/   Linda Garcia
    
	
 
    	
Name:   Linda Garcia
    
	
 
    	
Title:   Vice President
    

 

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EXHIBIT A

 

FORM OF

1.625% SENIOR NOTE DUE 2017

 

	
No.
    	
CUSIP No. 26441C AH8
    

 

DUKE ENERGY CORPORATION

1.625% SENIOR NOTE DUE 2017

 

Principal Amount:  $

 

Regular Record Date:  Close of business on the 15th calendar day prior to the relevant Interest Payment Date (whether or not a Business Day)

 

Original Issue Date:  August 16, 2012

 

Stated Maturity: August 15, 2017

 

Interest Payment Dates:  Semi-annually on February 15 and August 15 of each year, commencing February 15, 2013.

 

Interest Rate: 1.625% per annum

 

Authorized Denomination:  $2,000 or any integral multiple of $1,000 in excess thereof

 

Duke Energy Corporation, a Delaware corporation (the “Corporation”, which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to                           , or registered assigns, the principal sum of                                          DOLLARS ($                        ) on the Stated Maturity shown above and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on each Interest Payment Date as specified above, commencing on February 15, 2013 and on the Stated Maturity at the rate per annum shown above until the principal hereof is paid or made available for payment and at such rate on any overdue principal and on any overdue installment of interest.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity or a Redemption Date) will, as provided in the Indenture, be paid to the Person in whose name this 1.625% Senior Note due 2017 (this “Security”) is registered on the Regular Record Date as specified above next preceding such Interest Payment Date; provided that any interest payable at Stated Maturity or on a Redemption Date will be paid to the Person to whom principal is payable.  Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Securities

 

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shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Indenture.

 

Payments of interest on this Security will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for this Security shall be computed and paid on the basis of a 360-day year of twelve 30-day months and will accrue from August 16, 2012 or from the most recent Interest Payment Date to which interest has been paid or duly provided for. In the event that any date on which interest is payable on this Security is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay) with the same force and effect as if made on the date the payment was originally payable. “Business Day” means any day other than a Saturday or Sunday that is neither a Legal Holiday nor a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to close, or a day on which the Corporate Trust Office is closed for business.  “Legal Holiday” means any day that is a legal holiday in New York, New York.

 

Payment of principal of, premium, if any, and interest on the Securities of this series shall be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of principal of, premium, if any, and interest on the Securities of this series represented by a Global Security shall be made by wire transfer of immediately available funds to the Holder of such Global Security, provided that, in the case of payments of principal and premium, if any, such Global Security is first surrendered to the Paying Agent.  If any of the Securities of this series are no longer represented by a Global Security, (i) payments of principal, premium, if any, and interest due at the Stated Maturity or earlier redemption of such Securities shall be made at the office of the Paying Agent upon surrender of such Securities to the Paying Agent, and (ii) payments of interest shall be made, at the option of the Corporation, subject to such surrender where applicable, (A) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (B) by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.

 

The Securities of this series shall be redeemable, in whole or in part at any time and from time to time, at the option of the Corporation, on any date (a “Redemption Date”), at a redemption price equal to the greater of (i) 100% of the principal amount of the Securities of this series to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to such Redemption Date) discounted to such Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 15 basis points, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to such Redemption Date.

 

“Treasury Rate” means, with respect to any Redemption Date for the Securities of this series, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the

 

A-2

 

Comparable Treasury Price for such Redemption Date.  The Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the Securities of this series to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Securities of this series.

 

“Quotation Agent” means a Reference Treasury Dealer appointed by the Corporation.

 

“Comparable Treasury Price” means, with respect to any Redemption Date for the Securities of this series, (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if fewer than four such Reference Treasury Dealer Quotations are obtained, the average of all such Reference Treasury Dealer Quotations.

 

“Reference Treasury Dealer” means each of BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, plus one other financial institution appointed by the Corporation at the time of any redemption of the Securities of this series or their respective affiliates which are primary U.S. Government securities dealers in the United States (a “Primary Treasury Dealer”), and their respective successors; provided, however, that if any of the foregoing or their affiliates or successors ceases to be a Primary Treasury Dealer, the Corporation will substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Securities of this series, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

The Corporation shall notify the Trustee of the redemption price with respect to any redemption of the Securities of this series promptly after the calculation thereof.  The Trustee shall not be responsible for calculating said redemption price.

 

Notice of any redemption by the Corporation will be mailed at least 30 days but not more than 60 days before any Redemption Date to each Holder of Securities of this series to be redeemed.  If Notice of a redemption is provided and funds are deposited as required, interest will cease to accrue on and after the Redemption Date on the Securities of this series or portions of Securities of this series called for redemption.  In the event that any Redemption Date is not a Business Day, the Corporation will pay the redemption price on the next Business Day without any interest or other payment in respect of any such delay.  If less than all the Securities of this series are to be redeemed at the option of the Corporation, the Trustee shall select, in such manner as it shall deem fair and appropriate, the Securities of this series to be redeemed in whole

 

A-3

 

or in part.  The Trustee may select for redemption Securities of this series and portions of the Securities of this series in amounts of $2,000 or any integral multiple of $1,000 in excess thereof.

 

In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof.

 

The Securities of this series shall not have a sinking fund.

 

The Securities of this series shall constitute the direct unsecured and unsubordinated debt obligations of the Corporation and shall rank equally in priority with the Corporation’s existing and future unsecured and unsubordinated indebtedness.

 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

 

Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

A-4

 

IN WITNESS WHEREOF, the Corporation has caused this instrument to be duly executed.

 

	
 
    	
Duke   Energy Corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

	
Dated:
    	
The   Bank of New York Mellon Trust Company, 
    
	
 
    	
N.A.,   as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

A-5

 

(Reverse Side of Security)

 

This 1.625% Senior Note due 2017 is one of a duly authorized issue of Securities of the Corporation (the “Securities”), issued and issuable in one or more series under an Indenture, dated as of June 3, 2008, as supplemented (the “Indenture”), between the Corporation and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Corporation, the Trustee and the Holders of the Securities issued thereunder and of the terms upon which said Securities are, and are to be, authenticated and delivered.  This Security is one of the series designated on the face hereof as 1.625% Senior Notes due 2017 initially in the aggregate principal amount of $700,000,000. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.

 

If an Event of Default with respect to the Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Corporation and the rights of the Holders of the Securities of all series affected under the Indenture at any time by the Corporation and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of all series affected thereby (voting as one class).  The Indenture contains provisions permitting the Holders of not less than a majority in principal amount of the Outstanding Securities of all series with respect to which a default under the Indenture shall have occurred and be continuing (voting as one class), on behalf of the Holders of the Securities of all such series, to waive, with certain exceptions, such default under the Indenture and its consequences.  The Indenture also permits the Holders of not less than a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Corporation with certain provisions of the Indenture affecting such series. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Corporation, which is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Corporation for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Corporation and the Security Registrar and duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series, of authorized

 

A-6

 

denominations and of like tenor and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be made for any such registration of transfer or exchange, but the Corporation may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of the Securities of this series and for covenant defeasance at any time of certain covenants in the Indenture upon compliance with certain conditions set forth in the Indenture.

 

Prior to due presentment of this Security for registration of transfer, the Corporation, the Trustee and any agent of the Corporation or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Corporation, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 or any integral multiple of $1,000 in excess thereof. As provided in the Indenture and subject to the limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of the Security or Securities to be exchanged at the office or agency of the Corporation.

 

This Security shall be governed by, and construed in accordance with, the laws of the State of New York.

 

A-7

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN   COM — as tenants in common
    	
UNIF   GIFT MIN ACT -           
    	
Custodian            
    
	
 
    	
(Cust)
    	
(Minor)
    
	
 
    	
 
    
	
TEN   ENT — as tenants by the entireties
    	
 
    
	
 
    	
 
    
	
JT   TEN — as joint tenants with rights of survivorship and not as tenants in   common
    	
 
    	
under   Uniform Gifts to
   Minors Act               
    
	
 
    	
 
    	
(State)
    
				

 

Additional abbreviations may also be used though not on the above list.

 

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto (please insert Social Security or other identifying number of assignee)

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing agent to transfer said Security on the books of the Corporation, with full power of substitution in the premises.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NOTICE:   The signature to this assignment must correspond with the name as written   upon the face of the within instrument in every particular without alteration   or enlargement, or any change whatever.
    
	
 
    	
 
    
	
 
    	
Signature   Guarantee:
    	
 
    

 

A-8

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

A-9

 

EXHIBIT B

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

	
Dated:
    	
The   Bank of New York Mellon Trust Company, 
    
	
 
    	
N.A.,   as Trustee
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

B-1

 

EXHIBIT C

 

FORM OF

3.050% SENIOR NOTE DUE 2022

 

	
No.
    	
CUSIP No. 26441C AJ4
    

 

DUKE ENERGY CORPORATION

3.050% SENIOR NOTE DUE 2022

 

Principal Amount:  $

 

Regular Record Date:  Close of business on the 15th calendar day prior to the relevant Interest Payment Date (whether or not a Business Day)

 

Original Issue Date:  August 16, 2012

 

Stated Maturity: August 15, 2022

 

Interest Payment Dates:  Semi-annually on February 15 and August 15 of each year, commencing February 15, 2013.

 

Interest Rate: 3.050% per annum

 

Authorized Denomination:  $2,000 or any integral multiple of $1,000 in excess thereof

 

Duke Energy Corporation, a Delaware corporation (the “Corporation”, which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to                               , or registered assigns, the principal sum of                                                      DOLLARS ($                        ) on the Stated Maturity shown above and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on each Interest Payment Date as specified above, commencing on February 15, 2013 and on the Stated Maturity at the rate per annum shown above until the principal hereof is paid or made available for payment and at such rate on any overdue principal and on any overdue installment of interest.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity or a Redemption Date) will, as provided in the Indenture, be paid to the Person in whose name this 3.050% Senior Note due 2022 (this “Security”) is registered on the Regular Record Date as specified above next preceding such Interest Payment Date; provided that any interest payable at Stated Maturity or on a Redemption Date will be paid to the Person to whom principal is payable.  Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on

 

C-1

 

which the Securities shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Indenture.

 

Payments of interest on this Security will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for this Security shall be computed and paid on the basis of a 360-day year of twelve 30-day months and will accrue from August 16, 2012 or from the most recent Interest Payment Date to which interest has been paid or duly provided for.  In the event that any date on which interest is payable on this Security is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay) with the same force and effect as if made on the date the payment was originally payable.  “Business Day” means any day other than a Saturday or Sunday that is neither a Legal Holiday nor a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to close, or a day on which the Corporate Trust Office is closed for business.  “Legal Holiday” means any day that is a legal holiday in New York, New York.

 

Payment of principal of, premium, if any, and interest on the Securities of this series shall be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of principal of, premium, if any, and interest on the Securities of this series represented by a Global Security shall be made by wire transfer of immediately available funds to the Holder of such Global Security, provided that, in the case of payments of principal and premium, if any, such Global Security is first surrendered to the Paying Agent.  If any of the Securities of this series are no longer represented by a Global Security, (i) payments of principal, premium, if any, and interest due at the Stated Maturity or earlier redemption of such Securities shall be made at the office of the Paying Agent upon surrender of such Securities to the Paying Agent, and (ii) payments of interest shall be made, at the option of the Corporation, subject to such surrender where applicable, (A) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (B) by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.

 

At any time before May 15, 2022, the Securities of this series shall be redeemable, in whole or in part and from time to time, at the option of the Corporation, on any date (a “Redemption Date”), at a redemption price equal to the greater of (i) 100% of the principal amount of the Securities of this series being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to such Redemption Date) discounted to such Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 25 basis points, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to such Redemption Date.

 

At any time on or after May 15, 2022, the Securities of this series shall be redeemable, in whole or in part and from time to time, at the option of the Corporation, at a redemption price equal to 100% of the principal amount of the Securities of this series being redeemed plus accrued and unpaid interest on the principal amount being redeemed to such Redemption Date.

 

C-2

 

For purposes of the second preceding paragraph, the following terms have the following meanings:

 

“Treasury Rate” means, with respect to any Redemption Date for the Securities of this series, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.  The Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the Securities of this series to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Securities of this series.

 

“Quotation Agent” means a Reference Treasury Dealer appointed by the Corporation.

 

“Comparable Treasury Price” means, with respect to any Redemption Date for the Securities of this series, (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if fewer than four such Reference Treasury Dealer Quotations are obtained, the average of all such Reference Treasury Dealer Quotations.

 

“Reference Treasury Dealer” means each of BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, plus one other financial institution appointed by the Corporation at the time of any redemption of the Securities of this series or their respective affiliates which are primary U.S. Government securities dealers in the United States (a “Primary Treasury Dealer”) and their respective successors; provided, however, that if any of the foregoing or their affiliates or successors ceases to be a Primary Treasury Dealer, the Corporation will substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Securities of this series, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

The Corporation shall notify the Trustee of the redemption price with respect to any redemption of the Securities of this series occurring before May 15, 2022 promptly after the calculation thereof.  The Trustee shall not be responsible for calculating said redemption price.

 

Notice of any redemption by the Corporation will be mailed at least 30 days but not more than 60 days before any Redemption Date to each Holder of Securities of this series to be redeemed.  If Notice of a redemption is provided and funds are deposited as required, interest will cease to accrue on and after the Redemption Date on the Securities of this series or portions

 

C-3

 

of Securities of this series called for redemption.  In the event that any Redemption Date is not a Business Day, the Corporation will pay the redemption price on the next Business Day without any interest or other payment in respect of any such delay.  If less than all the Securities of this series are to be redeemed at the option of the Corporation, the Trustee shall select, in such manner as it shall deem fair and appropriate, the Securities of this series to be redeemed in whole or in part.  The Trustee may select for redemption Securities of this series and portions of the Securities of this series in amounts of $2,000 or any integral multiple of $1,000 in excess thereof.

 

In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof.

 

The Securities of this series shall not have a sinking fund.

 

The Securities of this series shall constitute the direct unsecured and unsubordinated debt obligations of the Corporation and shall rank equally in priority with the Corporation’s existing and future unsecured and unsubordinated indebtedness.

 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

 

Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

C-4

 

IN WITNESS WHEREOF, the Corporation has caused this instrument to be duly executed.

 

	
 
    	
Duke   Energy Corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

	
Dated:
    	
The   Bank of New York Mellon Trust Company, 
    
	
 
    	
N.A.,   as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

C-5

 

(Reverse Side of Security)

 

This 3.050% Senior Note due 2022 is one of a duly authorized issue of Securities of the Corporation (the “Securities”), issued and issuable in one or more series under an Indenture, dated as of June 3, 2008, as supplemented (the “Indenture”), between the Corporation and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Corporation, the Trustee and the Holders of the Securities issued thereunder and of the terms upon which said Securities are, and are to be, authenticated and delivered.  This Security is one of the series designated on the face hereof as 3.050% Senior Notes due 2022 initially in the aggregate principal amount of $500,000,000.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.

 

If an Event of Default with respect to the Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Corporation and the rights of the Holders of the Securities of all series affected under the Indenture at any time by the Corporation and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of all series affected thereby (voting as one class).  The Indenture contains provisions permitting the Holders of not less than a majority in principal amount of the Outstanding Securities of all series with respect to which a default under the Indenture shall have occurred and be continuing (voting as one class), on behalf of the Holders of the Securities of all such series, to waive, with certain exceptions, such default under the Indenture and its consequences.  The Indenture also permits the Holders of not less than a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Corporation with certain provisions of the Indenture affecting such series.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Corporation, which is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Corporation for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Corporation and the Security Registrar and duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series, of authorized

 

C-6

 

denominations and of like tenor and for the same aggregate principal amount, will be issued to the designated transferee or transferees.  No service charge shall be made for any such registration of transfer or exchange, but the Corporation may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of the Securities of this series and for covenant defeasance at any time of certain covenants in the Indenture upon compliance with certain conditions set forth in the Indenture.

 

Prior to due presentment of this Security for registration of transfer, the Corporation, the Trustee and any agent of the Corporation or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Corporation, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 or any integral multiple of $1,000 in excess thereof.  As provided in the Indenture and subject to the limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of the Security or Securities to be exchanged at the office or agency of the Corporation.

 

This Security shall be governed by, and construed in accordance with, the laws of the State of New York.

 

C-7

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN   COM — as tenants in common
    	
UNIF   GIFT MIN ACT -            
    	
Custodian        
    
	
 
    	
(Cust)
    	
(Minor)
    
	
 
    	
 
    
	
TEN   ENT — as tenants by the entireties
    	
 
    
	
 
    	
 
    
	
JT   TEN — as joint tenants with rights of survivorship and not as tenants in   common
    	
 
    	
under   Uniform Gifts to
   Minors Act 
    
	
 
    	
 
    	
(State)
    
				

 

Additional abbreviations may also be used though not on the above list.

 

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto (please insert Social Security or other identifying number of assignee)

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing agent to transfer said Security on the books of the Corporation, with full power of substitution in the premises.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NOTICE:    The signature to this assignment must   correspond with the name as written upon the face of the within instrument in   every particular without alteration or enlargement, or any change whatever.
    
	
 
    	
 
    
	
 
    	
Signature   Guarantee:
    	
 
    

 

C-8

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

C-9

 

EXHIBIT D

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

	
Dated:
    	
The   Bank of New York Mellon Trust Company, 
    
	
 
    	
N.A.,   as Trustee
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

D-1Exhibit 10.1

 

 

NEGOTIATED TRANSACTIONS

440 Louisiana, Suite 600

Houston, TX 77002

Phone:  713-861-1866

Fax:  832-201-9598

Email: Chris.Atherton@EnergyNet.com

 

SALE BROKERAGE/CONSULTING AGREEMENT

 

Between

 

Eastern American Natural Gas Trust

 

And

 

EnergyNet, Inc.

 

Contract No.           

 

 

SALE BROKERAGE/CONSULTING AGREEMENT

 

This Agreement is made and entered into this 16th day of August, 2012 (“Effective Date”), between EnergyNet.com, Inc. (“ENERGYNET”), with a business address at 7201 I-40 W., Ste. 319, Amarillo, TX, 79106, herein called “ENERGYNET”, and Eastern American Natural Gas Trust, with a business address at The Bank of New York Mellon Trust Company, N.A., Corporate Trustee, 919 Congress, Austin Texas 78701 herein called “SELLER.”

 

WITNESSETH:

 

WHEREAS, ENERGYNET has knowledge and professional experience in the area of oil and gas marketing, acquisitions and divestitures;

 

WHEREAS, ENERGYNET has provided information to Seller, including the proposal titled “Eastern American Natural Gas Trust Proposal” dated July 20, 2012 (the “Proposal”) regarding ENERGYNET’s experience and other matters;

 

WHEREAS, SELLER desires to retain ENERGYNET to perform sales brokerage and consulting services (hereinafter called “Services”) as described in Article 4 and in Exhibit A involving the sale of properties (the “Properties”) as described in Exhibit B.

 

WHEREAS, Seller has advised ENERGYNET that Seller is required by the terms of its governing documents to liquidate and distribute its assets to its unitholders during 2013;

 

NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties confirm our understanding with regard to the engagement of ENERGYNET by SELLER to provide Services.

 

ARTICLE 1 — ENGAGEMENT TERM

 

For purposes of this Agreement, the Term of this engagement will commence on the Effective Date and end upon the closing of the Properties sale(s) or termination by SELLER or ENERGYNET as hereinafter provided.  During the Term of the engagement, ENERGYNET shall make available to SELLER the Services of ENERGYNET and SELLER grants ENERGYNET the exclusive right to sell the Properties; subject, however, to the right of Energy Corporation of America to exercise its preferential right to purchase the Properties.

 

ARTICLE 2 — SELLER’S RIGHTS

 

ENERGYNET understands and agrees that SELLER may: (1) decline to accept any advice, recommendation or Services offered or performed by ENERGYNET hereunder; (2) determine the list of assets to be sold in any contemplated transaction; (3) decline or accept any and/or all proposed transactions; or (4) terminate this Agreement at any time, subject to the requirements in Article 6.

 

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ARTICLE 3 — SELLER’S OBLIGATIONS

 

SELLER shall cooperate with ENERGYNET in obtaining and preparing information necessary for ENERGYNET to provide SERVICES.  SELLER further agrees that SELLER grants ENERGYNET the exclusive right to sell the properties and that SELLER shall, during the Term of this Agreement, forward all inquiries regarding the Properties to ENERGYNET.

 

ARTICLE 4 — SERVICES

 

ENERGYNET shall act as a consultant to SELLER for purposes of assisting and consummating direct placement negotiated sales of oil and gas properties.  Services may include but are not limited to the tasks outlined in Exhibit A and collectively referred to as 
 “Services” for purposes of this Agreement.

 

ENERGYNET represents and warrants to Seller that the information it has provided to Seller, including without limitation the information in the Proposal, is accurate in all material respects.

 

ENERGYNET will familiarize itself to the extent reasonably necessary and feasible with the Properties, it being understood that ENERGYNET shall, in the course of such familiarization, rely entirely upon information as may be supplied by SELLER without independent investigation.

 

ENERGYNET shall comply with all applicable laws, rules and regulations in connection with the marketing and sale of the Properties, and shall not take or fail to take any action that could result in Seller being in violation of any law, rule or regulation or liable to any person or governmental agency or authority for any amount or obligation other than (a) payment of the Sale Success Fee to ENERGYNET, (b) payment of any taxes imposed on Seller in connection with the sale of the Properties, and (c) payment of any expenses of the sale of the Properties approved by Seller in advance.

 

ARTICLE 5 — COMPENSATION

 

1)             Retainer

 

SELLER agrees to pay ENERGYNET non-refundable retainers of $ 0 payable upon execution of this Agreement and $ 0 payable upon the opening of the internet or physical data room.

 

2)             Sale Success Fee

 

At the closing of any sale of the Properties, or any portion thereof, during the Engagement Term or within 180 days following the end of the Engagement Term, SELLER will pay to ENERGYNET a “Sale Success Fee” of 4.0% of the first $2MM of the total sales price and 2% thereafter. Total sales price shall mean the total of all cash,

 

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plus the fair market value of all other non-cash forms of payment received by SELLER in connection with a sale.

 

SELLER’s obligation to pay Sale Success Fee will survive the termination of this Agreement.  The Sale Success Fee and all other payments to EnergyNet shall be paid in cash, in immediately available funds, at its corporate office in Potter County, Texas, or to such account of ENERGYNET with such bank or other financial institution as may be designated by ENERGYNET in writing at least two business days prior to the date any such payment is due.

 

ARTICLE 6 — INDEPENDENT CONTRACTOR

 

In performing under this Agreement, ENERGYNET shall act at all times an independent contractor.  ENERGYNET shall not make any commitment or incur any charge or expense in the name of SELLER, except as specifically provided herein.  SELLER shall have no direct control or supervision of ENERGYNET or its employees, subcontractors or agents in providing the Services.  The actual performance and supervision of all Services hereunder shall be by ENERGYNET.

 

ARTICLE 7 — TERMINATION

 

SELLER may at any time terminate this Agreement effective immediately upon written notice received by ENERGYNET.  In the event of termination, ENERGYNET shall be entitled to reimbursement of all expenses and payment for all compensation for Services performed up to the time of termination and as outlined in Article 5. As provided for in Article 5, if a Properties sale transaction or any portion thereof occurs within 180 days after such termination, then SELLER shall be liable to ENERGYNET for payment of the Sale Success Fee.

 

ENERGYNET may terminate this Agreement for any of the following reasons:  1) SELLER withdraws Properties or a portion of the Properties from this Agreement; (2) SELLER rejects reasonable offers to purchase Properties or a portion of the Properties; (3) SELLER engages in conduct which renders it unreasonably difficult for ENERGYNET to perform the Services; (4) SELLER fails to comply with reasonable requests of ENERGYNET; (5) SELLER insists that ENERGYNET engage in conduct that is contrary to ENERGYNET’s judgment or with which ENERGYNET fundamentally disagrees.  In the event that ENERGYNET believes it has the right to terminate this Agreement based upon the events identified in this paragraph, ENERGYNET shall provide written notice to SELLER identifying such grounds and SELLER will have ten (10) days to resolve such grounds.  In the event of termination following a failure or inability to resolve such grounds, ENERGYNET may terminate this agreement effective immediately upon notice received by SELLER.  As provided for in Article 5, if a Properties sale transaction or any portion thereof occurs within 180 days after such termination, then SELLER shall be liable to ENERGYNET for payment of the Sale Success Fee.

 

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ARTICLE 8 — INDEMNITY AND RELEASE

 

1)              ENERGYNET shall protect, indemnify and save harmless and defend SELLER, its directors, officers, contractors, subcontractors, agents and employees, and SELLER subsidiaries and affiliates, and their respective directors, officers, agents and employees from and against any and all loss, cost (including but not limited to reasonable attorney’s fees), damage, injury, liability, claims, liens, demands, taxes, penalties interest or cause of action of every nature whatsoever in any manner arising out of or incident to or in connection with: (i) the performance of the Services to the extent resulting from the breach of this Agreement by ENERGYNET or (ii) any negligent act or omission or willful misconduct of ENERGYNET or its subcontractors or their respective officers, agent or employees. SELLER shall have the right, but not the obligation, at its own expense, to join in the defense of any action in which it is made a defendant.

 

2)              SELLER shall protect, indemnify and save harmless and defend ENERGYNET, its directors, officers, contractors, subcontractors, agents and employees from and against any and all loss, cost (including but not limited to reasonable attorney’s fees), damage, injury, liability, claims, liens, demands, taxes, penalties, interest or cause of action of every nature whatsoever in any manner arising out of or incident to or in connection with: (i) the breach of this Agreement by SELLER, (ii) SELLER’S actual knowledge of any untrue statement of a material fact contained in any offering materials or any amendment or supplement thereto or the omission to state a material fact necessary to make the statements therein not misleading in light of the circumstances in which they were made, or any action taken by any party in reliance upon such untrue statement or omission, or (iii) any negligent act or omission or willful misconduct of SELLER or its subcontractors or their respective officers, agents or employees; provided, however, that the foregoing indemnification by Seller of ENERGYNET shall terminate and be of no further effect upon the sale of the Properties; it being understood that Seller is required by the terms of its governing documents to liquidate and distribute its assets to its unitholders during 2013. ENERGYNET shall have the right, but not the obligation, at its own expense to join in the defense of any action in which it is made a defendant.

 

3)              If a claim or cause of action of the nature described in Article 8(1) or 8(2) arises out of the joint or concurrent negligence or willful misconduct of ENERGYNET and SELLER, it is the express intent of the parties that each of them shall protect, defend, indemnify and save harmless the other to the extent of the indemnifying party’s negligence or willful misconduct.  The indemnification rights of SELLER and obligations of ENERGYNET under this Article 8 shall survive termination of this Agreement.

 

4)              In connection with the indemnity provided by SELLER to ENERGYNET hereunder, SELLER agrees to reimburse ENERGYNET for ENERGYNET’s out-of-pocket expenditures incurred by ENERGYNET in connection with any assistance ENERGYNET may provide at the request of SELLER in defense of SELLER against any claim asserted by a third party relative to any cause of action, claim or suit in which the Services provided by ENERGYNET hereunder are or become relevant, or where ENERGYNET is named as a Party with SELLER in such an action; provided, however,

 

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except that said reimbursement shall not apply where the alleged or actual negligence of ENERGYNET or its subcontractors or their officers, agents or employees shall be an issue in dispute or connected with, directly or indirectly, the said cause of action, claim or suit.

 

5)              Notwithstanding any other provision of this Agreement, upon the sale of the Properties, ENERGYNET hereby absolutely and unconditionally releases Seller from any liability or obligation arising out of or in connection with the transactions contemplated by this Agreement, other than ENERGYNET’s rights, if any, to (a) payment of the Sale Success Fee, and (b) payment of any expenses of the sale of the Properties approved by Seller in advance.

 

6)              It is expressly understood and agreed by the parties that (a) this Agreement is executed and delivered by The Bank of New York Mellon Trust Company, N.A. (the “Bank”) solely as trustee (the “Trustee”) of Eastern American Natural Gas Trust (the “Trust”), and not individually or personally, and (b) under no circumstances shall the Bank or the Trustee be responsible or liable for any obligation of Seller or the Trust under this Agreement; any such liability being expressly limited to the assets, if any, of the Trust.  ENERGYNET hereby absolutely and unconditionally releases the Bank and the Trustee from any liability or obligation arising out of or in connection with the transactions contemplated by this Agreement.

 

ARTICLE 9 — NOTICES

 

All legal notices and communications provided for in this Agreement shall be addressed and properly mailed as follows (or otherwise addressed as the respective parties shall subsequently specify in writing);

 

If to ENERGYNET:

 

EnergyNet.com, Inc.

7201 I-40 West, Ste. 319

Amarillo, TX 79106

ATTN:  Jim Black

 

If to SELLER:

 

The Bank of New York Mellon Trust Company, N.A., as trustee

of Eastern American Natural Gas Trust

919 Congress, Suite 500

Austin, Texas 78701

 

Attention: Mike Ulrich, Vice President

 

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ARTICLE 10 — AMENDMENTS

 

This Agreement may not be amended, or any provision hereto waived, except by a written amendment executed with the same formality as this Agreement and executed by duly authorized representatives of the respective parties.

 

ARTICLE 11 — ENTIRE AGREEMENT

 

This Agreement sets forth the entire Agreement between SELLER and ENERGYNET relating to the Services and there are no promises or understandings between the parties other than those expressly stated herein.

 

ARTICLE 12 — HEADINGS

 

Headings used throughout this Agreement are for administrative convenience only and shall be disregarded for the purpose of construing and enforcing this Agreement.

 

ARTICLE 13 — WAIVER AND SEVERABILITY

 

In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision and never been contained therein.

 

Each party acknowledges and agrees that no waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other portions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

 

ARTICLE 14 — PUBLICITY

 

ENERGYNET may advertise the Services provided, and the successful conclusion of any sale which might occur pursuant to this Agreement, except that the distribution or publication of specific sales price information is prohibited unless agreed to by SELLER in advance.

 

ARTICLE 15 — ASSIGNMENT

 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  This Agreement may not be assigned by either party without the prior written consent of the other party.

 

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ARTICLE 16 — GOVERNING LAW

 

Each party acknowledges and agrees that this Agreement shall be governed by and interpreted in accordance with the laws of the State of Texas and the exclusive venue for any action related to or concerning this Agreement shall be the Federal District Court for the Northern District of Texas, Amarillo Division and the Texas District Courts for Potter County, Texas. This Agreement and all matters relating to the meaning, validity or enforceability thereof and the performance of the Services hereunder shall be governed by the laws of the State of Texas.

 

ARTICLE 16 — COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, and each counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one Agreement.

 

[SIGNATURES ON NEXT PAGE]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement effective the day and year first stated above.

 

 

	
ENERGYNET.COM, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   William W. Britain
    	
 
    
	
Name:
    	
William   W. Britain
    	
 
    
	
Title:
    	
President/CEO
    	
 
    
	
Date:
    	
August   16, 2012
    	
 
    

 

 

SELLER

 

 

	
 
    	
Eastern American Natural Gas Trust
    
	
 
    	
 
    
	
 
    	
By:
    	
The Bank of New York Mellon Trust Company,
    
	
 
    	
 
    	
N.A.,
    
	
 
    	
 
    	
as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mike Ulrich
    
	
 
    	
Name:
    	
Mike   Ulrich
    
	
 
    	
Title:
    	
Vice   President
    

 

9

 

Exhibit A

SERVICES

 

ENERGYNET shall provide Services under this Agreement to assist SELLER in the sale process from initiation through closing.  Such Services may include but are not limited to the following tasks:

 

1.                                        Assist SELLER to analyze properties for divestiture and develop a marketing strategy designed to achieve SELLER’S goals;

 

2.                                        Identify, collect and organize information needed to prepare offering materials;

 

3.                                        Facilitate, to the degree desired for sale presentation by SELLER, internal and third party coordination to finalize engineering including evaluation of upside value;

 

4.                                        Establish timeline goals and identify sale issues;

 

5.                                        Advise on market value estimates based on final engineering and price and timing assumptions;

 

6.                                        Finalize marketing materials and Information Memorandum and organize data for marketing and internet or other data room presentation;

 

7.                                        Distribute teasers or publish select advertising (website, Market Report) for broad market exposure and personally contact, as practical, select recipients to gauge interest level and ensure offering attention;

 

8.                                        If applicable, receive and review executed confidentiality agreements from buyers;

 

9.                                        Manage BUYER activity throughout marketing and assist with BUYER data needs;

 

10.                                  Receive bids and advise on bid evaluations;

 

11.                                  Facilitate negotiation of bids to the extent desired by SELLER; and

 

12.                                  Provide BUYER due diligence and closing support as requested by SELLER.

 

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Exhibit B

PROPERTIES

 

All right, title, and interests in and to the oil and gas properties described below, collectively referred to for purposes of this Agreement as the “Properties”:

 

All right, title and interest of Eastern American Natural Gas Trust (or of the Trustee of Eastern American Natural Gas Trust, acting in its capacity as such) in and to the Royalty NPI from Eastern American Energy Corporation, a West Virginia corporation, to Bank of Montreal Trust Company, a trust corporation organized under the laws of the State of New York, as trustee of Eastern American Natural Gas Trust under that certain Amended and Restated Trust Agreement dated as of January 1, 1993, delivered to be effective as of 7:00 a.m. Eastern Time, January 1, 1993.

 

For the avoidance of doubt, the Properties DO NOT INCLUDE any other asset or interest held by Eastern American Natural Gas Trust (or of the Trustee of Eastern American Natural Gas Trust, acting in its capacity as such).

 

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