Document:

Exhibit 10.6

 

AMENDMENT TO

DEFERRED COMPENSATION AGREEMENT

 

The Deferred Compensation Agreement dated December 16,
1992 between PSI Energy Inc., a predecessor to Duke Energy Corporation (the “Company”)
and James E. Rogers (the “Agreement”) is amended, effective August 26,
2008, as follows:

 

1.             A
new Section 17 is added to the Agreement as follows:

 

“Section 17

Compliance with Section 409A

 

This Section 17 shall apply to any “amounts
deferred” under this Agreement in taxable years beginning after December 31,
2004 (within the meaning of Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”)).  By way
of example, this Section 17 will apply to the portion of earnings
attributable to post-2004 services that exceeds a reasonable rate of interest
as defined under Section 409A of the Code. 
Any “amounts deferred” in taxable years beginning before January 1,
2005 under the Agreement (within the meaning of Section 409A of the Code) shall
be governed by the terms of the Agreement as in effect on October 3, 2004,
and it is intended that such amounts be exempt from the application of Section 409A
of the Code.  Nothing contained herein is
intended to materially enhance a benefit or right existing under the Agreement
as of October 3, 2004 or add a new material benefit or right to such
Agreement.

 

a.             The benefits payable under Section 2.b. and Section 3.b.
shall commence on the first to occur of (i) January of the year following
Rogers’ “separation from service” with Duke Energy Corporation and its affiliates
(the “Company”) within the meaning of Section 409A of the Code, or such
later date as provided in Section 17(c), or (ii) January, 2010.

 

b.             Reference to a “fifteen (15)-year certain period” means that
the annual benefit shall be paid on the designated payment commencement date
and on each anniversary thereof through the end of the 14th anniversary of the
payment date.

 

c.             If Rogers is a “specified employee” on his “separation from
service”, as determined under the Company’s policy for identifying specified
employees, then to the extent required in order to comply with Section 409A of
the Code, any amount payable under this Agreement that constitutes a “deferral
of compensation” within the meaning of Section 409A of the Code, that is
provided as a result of a “separation from service” within the meaning of Section 409A
of the Code and that would otherwise be paid or provided during the 

 

 

first six months following such separation from
service shall instead be accumulated through and paid, together with interest
at the applicable federal rate under Section 7872(f)(2)(A) of the
Code in effect on the separation from service, within 30 days after the first
business day that is more than six months after the date of his separation from
service (or, if Rogers dies during such six-month period, within 30 days after
his death).

 

d.             It is intended that this Amendment comply with the
requirements of Section 409A of the Code. 
This Amendment shall be construed, administered, and governed in a
manner that effects such intent, and the Company shall not take any action that
would be inconsistent with such intent. 
Rogers consents to any revision to this Amendment as the Company may
reasonably make in furtherance of such intention, and the Company shall
promptly provide, or make available to, Rogers a copy of such revision.  Although the Company shall use its best
efforts to avoid the imposition of taxation, interest and penalties under Section
409A of the Code, the tax treatment of the benefits provided under this Amendment
is not warranted or guaranteed.  Neither
the Company, its affiliates, nor their respective directors, officers,
employees or advisers shall be held liable for any taxes, interest, penalties
or other monetary amounts owed by Rogers or other taxpayer as a result of the
Amendment.”

 

2.             Except
as explicitly set forth herein, the Agreement will remain in full force and
effect.

 

IN WITNESS WHEREOF, the parties hereto have executed this
amendment to the Agreement as of the day and year first above written.

 

 

	
   

  	
  DUKE
  ENERGY CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/Ann
  Maynard Gray

  
	
   

  	
  By: 

  	
  Ann
  Maynard Gray

  
	
   

  	
  Title: 

  	
  Lead
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/James
  E. Rogers

  
	
   

  	
  James E.
  Rogers

  
				

 

2Exhibit 10.7

 

(Current and Former Employees)

 

Amendment
to Award Agreements

Duke
Energy Corporation Long-Term Incentive Plans

 

Effective
as of December 31, 2008, except as provided below, each outstanding award
(each an “Award”) previously granted under the Duke Energy Corporation 1998
Long-Term Incentive Plan, Duke Energy Corporation 2006 Long-Term Incentive Plan
and Cinergy Corp. 1996 Long-Term Incentive Compensation Plan is hereby amended
as described below.

 

1.             Performance
Shares – Timing of Payments

 

Each performance share award is amended to specify
that performance shares and dividend equivalents will be paid within 60 days
after the date that the performance results are certified, but in no event
after the end of the calendar year following the calendar year in which the
performance period ends.  Each
performance share award also is amended to provide that in the event of a
change in control, any resulting performance shares and dividend equivalents
will be paid within 60 days after the change in control.  Prior to this amendment, the Awards generally
provided that payments would be made “as soon as practicable” following the
date an amount became payable.

 

2.             Phantom
Shares – Timing of Payments

 

Each phantom share award is amended to specify that phantom
shares will be paid within 60 days after the date such shares become vested,
but in no event after the end of the calendar year in which such vesting
occurs.  Each phantom share award also is
amended to specify that dividend equivalents will be paid within 60 days after
actual dividends are paid to Duke Energy’s shareholders, but in no event after
the end of the calendar year in which such dividends are paid to the
shareholders.  Prior to this amendment,
the Awards generally provided that payments would be made “as soon as
practicable” following the vesting date or the date that actual dividends were
paid to shareholders.

 

3.             Tax
Withholding on Deferred LTIP Awards

 

Each phantom and performance share award is amended to
provide that the Award holder no longer has the right to choose whether to write
a check to satisfy the tax withholding obligation or to reduce his or her
vested Award by using shares to satisfy the tax withholdings.  With respect to Awards that have been
deferred beyond the vesting date, the Company will now have the discretion to
decide whether the required tax withholding obligation (i.e., FICA taxes
and local taxes in some jurisdictions) will be satisfied by either requiring
the Award holder to write a check to Duke Energy or reducing the Award holder’s
deferred shares by the amount of the required taxes.

 

4.             Phantom
Shares Granted in 2005

 

Retirement eligible individuals continue to vest in
their phantom shares following retirement. 
However, each phantom share award provided to retirement eligible
individuals is amended to provide that the payment of the Award will no longer
be accelerated in the event that the Award holder separates from service within
two years following a change in control. 
Each phantom share also is amended to remove the six-month delay of
payment that could otherwise apply to an individual who is considered a 

 

 

“specified employee” under Section 409A of the tax
code (i.e., generally one of the 50 highest paid officers).

 

5.             Leave of
Absence Provisions

 

Each performance share award is amended to provide
that if an employee is on an approved leave of absence (“LOA”) at the end of
the performance period, in order to receive payment he or she must return to
active service before November 1 of the calendar year immediately
following the calendar year in which the performance period ends.  Each performance share award is amended to
provide that if an employee is on an LOA on the date of a change in control, in
order to receive payment he or she must return to active service before January 15
of the calendar year following the calendar year in which the change in control
occurs.  Each phantom share award is
amended to provide that an employee who commences an LOA will not vest in any
additional shares unless he or she returns to active service before January 15
of the calendar year following the calendar year in which the LOA commenced.  Prior to this amendment, the phantom share
and performance share awards provided that in order to receive payment the
employee must return to active service in accordance with the terms of the LOA
and, generally, before either the second or tenth anniversary of the date of the
Award.  For this purpose, periods of
short-term or long-term disability are not treated as an LOA.

 

6.             Miscellaneous

 

If
an Award holder is notified separately that an Award contains unique terms and
is therefore not subject to this Amendment, that Award shall be amended as
provided in such separate notice.  This amendment
has been written in a manner that is intended to apply to a variety of Awards
that contain similar, but not necessarily identical, terms; accordingly, to the
extent any provision contained in this Amendment otherwise would amend an Award
to add a provision that is already contained in the Award and that complies
with Section 409A of the tax code, such portion of the Amendment shall be
disregarded with respect to such Award.  It
is intended that the payments provided under the Award shall either be exempt
from the application of, or comply with, Section 409A of the tax
code.  The Awards shall be construed,
administered, and governed in a manner that effects such intent, and Duke
Energy shall not take any action that would be inconsistent with such
intent.  The Award holder consents to any
amendment that Duke Energy may reasonably make in furtherance of such
intention, and Duke Energy shall promptly provide, or make available to, the
Award holder a copy of such amendment.  Without
limiting the foregoing, the payments provided under the Awards may not be deferred,
accelerated, extended, paid out or modified in a manner that would result in
the imposition of an additional tax under Section 409A of the tax code.  Although Duke Energy will use its best
efforts to avoid the imposition of taxation, interest and penalties under Section 409A
of the tax code, the tax treatment of the benefits provided under the Awards is
not warranted or guaranteed.  Neither
Duke Energy, its affiliates, nor their respective directors, officers,
employees or advisers shall be held liable for any taxes, interest, penalties
or other monetary amounts owed by the Award holder or other taxpayer as a
result of the Awards.  This Amendment
also applies to any Awards relating to Spectra Energy common stock that were
provided to the Award holder in connection with the spin-off of Spectra Energy
in January, 2007.

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