Document:

Exhibit 10.2 Transition Services Agreement

 Exhibit 10.2 
 EXECUTION COPY 
 TRANSITION SERVICES AGREEMENT 
 by and between 
 DUKE ENERGY
CORPORATION 
 and  
 SPECTRA ENERGY CORP 
  
 Dated as of December 13,
2006 
  

 TRANSITION SERVICES AGREEMENT 
 THIS TRANSITION SERVICES AGREEMENT (this “Agreement”) is entered into as of December 13, 2006, by and between Duke Energy
Corporation, a Delaware corporation (“Duke Energy”), and Spectra Energy Corp (f/k/a Gas SpinCo, Inc.), a Delaware corporation (“Spectra Energy”), each a “Party” and together, the
“Parties”. 
 R E C I T A L S: 
 WHEREAS, Duke Energy, acting through its direct and indirect subsidiaries, currently conducts a number of businesses, including (i) the Gas Business, and (ii) the Power Business; 
 WHEREAS, the Board of Directors of Duke Energy has determined that it is appropriate, desirable and in the best interests of Duke Energy and its
stockholders to separate Duke Energy into two separate, independent and publicly traded companies: (i) one comprising the Gas Business, which shall be owned and conducted, directly or indirectly, by Spectra Energy, and (ii) one comprising
the Power Business which shall continue to be owned and conducted, directly or indirectly, by Duke Energy; 
 WHEREAS, to effect this
separation the Parties entered into that certain Separation and Distribution Agreement dated as of even date hereof (as amended or otherwise modified from time to time, the “Separation Agreement”); 
 WHEREAS, Duke Energy and Spectra Energy desire that if (but only if) the Distribution occurs, Duke Energy will provide to Spectra Energy and its
subsidiaries during the relevant Services Term, directly or through Duke Energy’s Affiliates or subcontractors, the Duke Energy Services, all in accordance with the terms and subject to the conditions set forth in this Agreement; and

 WHEREAS, Duke Energy and Spectra Energy desire that if (but only if) the Distribution occurs, Spectra Energy will provide to Duke Energy
and its subsidiaries during the relevant Services Term, directly or through Spectra Energy’s Affiliates or subcontractors, the Spectra Energy Services, all in accordance with the terms and subject to the conditions set forth in this Agreement.

 NOW, THEREFORE, in consideration of the foregoing premises, the mutual promises and covenants hereinafter set forth, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows: 
  

	1.	Definitions. 

 As used in this Agreement, the following capitalized
terms shall have the following meanings: 
 “Action” shall have the meaning set forth in the Separation Agreement.

 “Additional Service” shall have the meaning set forth in Section 2.8(b). 
  

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 “Affiliate” shall have the meaning set forth in the Separation Agreement. 
 “Agreement” shall have the meaning set forth in the preamble hereof. 
 “Agreement Dispute” shall have the meaning set forth in Section 12. 
 “Ancillary Agreement” shall have the meaning set forth in the Separation Agreement. 
 “Auditing Entity” shall have the meaning set forth in Section 9.3. 
 “Business” shall mean the Gas Business or the Power Business, as applicable. 
 “Business Day” shall have the meaning set forth in the Separation Agreement. 
 “Confidential Information” shall have the meaning set forth in the Separation Agreement. 
 “Contract” shall have the meaning set forth in the Separation Agreement. 
 “Default Interest Rate” shall have the meaning set forth in Section 3.1(c). 
 “Distribution” shall have the meaning set forth in the Separation Agreement. 
 “Distribution Date” shall have the meaning set forth in the Separation Agreement. 
 “Due Date” shall have the meaning set forth in Section 3.1(b). 
 “Duke Energy” shall have the meaning set forth in the preamble hereof. 
 “Duke Energy Group” shall have the meaning set forth in the Separation Agreement. 
 “Duke Energy Project Manager” shall have the meaning set forth in Section 2.10. 
 “Duke Energy Services” shall mean the limited enumerated services described on Schedule A-1, Schedule A-2, Schedule
A-3 of the Schedules to Transition Services Agreement document attached hereto and each next consecutive Schedule A through and including Schedule A-46 included therein. 
 “Duke Energy Trademarks” shall have the meaning set forth in Section 13.2(a). 
 “Effective Time” shall have the meaning set forth in the Separation Agreement. 
 “FERC” shall mean the U.S. Federal Energy Regulatory Commission, or its successor agency. 
 “Fee” or “Fees” shall have the meaning set forth in Section 3.1(a). 
 “Force Majeure” shall have the meaning set forth in the Separation Agreement. 
 “Gas Business” shall have the meaning set forth in the Separation Agreement. 
  

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 “Governmental Approvals” shall have the meaning set forth in the Separation Agreement.

 “Governmental Entity” shall have the meaning set forth in the Separation Agreement. 
 “Group” shall mean either the Duke Energy Group or the Spectra Energy Group, as applicable. 
 “Law” shall have the meaning set forth in the Separation Agreement. 
 “Liabilities” shall have the meaning set forth in the Separation Agreement. 
 “New York Courts” shall have the meaning set forth in Section 15.16. 
 “Omitted Service” shall have the meaning set forth in Section 2.8(a). 
 “Party” shall have the meaning set forth in the preamble hereof. 
 “Person” shall have the meaning set forth in the Separation Agreement. 
 “Power Business” shall have the meaning set forth in the Separation Agreement. 
 “Prime Rate” shall have the meaning set forth in the Separation Agreement. 
 “Separation Agreement” shall have the meaning set forth in the recitals hereto. 
 “Service” shall mean any of the Spectra Energy Services and the Duke Energy Services, as applicable. 
 “Service Provider” shall mean Duke Energy with respect to the Duke Energy Services, and Spectra Energy with respect to the Spectra
Energy Services. 
 “Service Recipient” shall mean Spectra Energy with respect to the Duke Energy Services, and Duke Energy
with respect to the Spectra Energy Services. 
 “Services Group” shall mean any Services or group of Services identified on
one Schedule attached to this Agreement and for which Service or group of Services a single, separate Fee is specified on such Schedule. 
 “Services Term” shall have the meaning set forth in Section 4.1. 
 “Spectra Energy” shall
have the meaning set forth in the preamble hereof. 
 “Spectra Energy Group” shall have the meaning set forth in the
Separation Agreement. 
 “Spectra Energy Project Manager” shall have the meaning set forth in Section 2.10. 

“Spectra Energy Services” shall mean the limited enumerated services described on Schedule B-1, Schedule B-2,
Schedule B-3 of the Schedules to Transition Services Agreement 

  

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document attached hereto and each next consecutive Schedule B through and including Schedule B-14 included therein. 
 “Subsidiary” shall have the meaning set forth in the Separation Agreement. 
 “TM License Period” shall have the meaning set forth in Section 13.2(a). 
  

	2.	Services. 

 2.1     Scope of
Services. 
 (a)    Spectra Energy hereby retains Duke Energy to provide, and Duke Energy hereby agrees to provide,
the Duke Energy Services to Spectra Energy or any of its subsidiaries, as designated by Spectra Energy, during the relevant Services Term. 
 (b)    Duke Energy hereby retains Spectra Energy to provide, and Spectra Energy hereby agrees to provide, the Spectra Energy Services to Duke Energy or any of its subsidiaries, as designated by Duke Energy, during the
relevant Services Term. 
 (c)    Notwithstanding anything to the contrary in this Agreement, (i) the Duke Energy
Services shall be available to Spectra Energy or any of its subsidiaries only for the purposes of conducting the Gas Business substantially in the same manner and places as it was conducted immediately prior to the Effective Time; and (ii) the
Spectra Energy Services shall be available to Duke Energy or any of its subsidiaries only for the purposes of conducting the Power Business substantially in the same manner and places as it was conducted immediately prior to the Effective Time.

 2.2    Provision of Services. The Duke Energy Services may be directly provided by Duke Energy or may be
provided through any of its Affiliates or subcontractors, and the Spectra Energy Services may be directly provided by Spectra Energy or may be provided through any of its Affiliates or subcontractors. 
 2.3    No Financing to Services Recipient. In no event shall a Service Provider or its Affiliates be required to (i) lend
any funds to a Service Recipient or its Affiliates, (ii) expend funds for any additional equipment or material or property (real or personal) on behalf of Service Recipient, or (iii) make any payments or disbursements on behalf of Service
Recipient, except to the extent Service Recipient has previously delivered to Service Provider sufficient funds to make any such expenditures, payment or disbursement. 
 2.4    No Assumption or Modification of Obligations. Nothing herein shall be deemed to (i) constitute the assumption by Service Provider or any of its Affiliates, or the agreement to
assume, any duties, obligations or liabilities of Service Recipient or its Affiliates whatsoever; or (ii) alter, amend or otherwise modify any obligation of Duke Energy or Spectra Energy under the Separation Agreement. 
 2.5    Application of Resources. Unless otherwise expressly required under the terms of any relevant Schedule hereto or the
Separation Agreement, or otherwise agreed to by the Parties in writing, in providing the Services, Service Provider or its Affiliates shall not be obligated to: 

  

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(i) expend funds and other resources beyond levels that would be customary and reasonable for any other nationally recognized service provider to perform
services that are similar to the relevant Services; (ii) maintain the employment of any specific employee or subcontractor; (iii) purchase, lease or license any additional (measured as of the even date hereof) equipment or materials
(expressly excluding any renewal or extension of any leases or licenses required for Service Provider to perform the relevant Services during the relevant Services Term); or (iv) pay any of Service Recipient’s costs related to its or any
of its Affiliates’ receipt of the Services. 
 2.6    Performance of Services. Subject to the other terms
(i) in this Agreement setting forth and circumscribing Service Provider’s performance obligations hereunder (including in Sections 2.1, 2.2, 2.3, 2.5, 2.7, 2.8, 2.9 and 6, and (ii) in the relevant Schedules hereto, each Service
Provider shall perform, or cause the applicable members of its Group to perform, the Services required to be provided by it hereunder in a manner specifically described in the relevant Schedules hereto, or, to the extent not so described in such
Schedules, in a manner that is substantially the same in nature, accuracy, quality, completeness, timeliness, responsiveness and efficiency with how such relevant Services have been rendered to the Gas Business by Duke Energy (or any of its
subsidiaries) prior to the Effective Time, or to the Power Business by Spectra Energy (or any of its subsidiaries) prior to the Effective Time. 
 2.7    Transitional Nature of Services; Changes. The Parties acknowledge the transitional nature of the Services and agree that notwithstanding anything to the contrary herein, each Service Provider may make
changes from time-to-time in the manner of performing the Services if such Service Provider is making similar changes in performing similar services for itself and/or its Affiliates; provided that Service Provider must provide Service
Recipient with at least thirty (30) days prior written notice of such changes. 
 2.8    Omitted Services;
Additional Services; Extension of Services Terms. 
 (a)    Omitted Services. If, after the Distribution Date
and prior to December 31, 2007, a Party identifies a service that the other Party (or a member of such other Party’s Group) previously provided to such first Party (or any of its subsidiaries) prior to the Distribution Date, but such
service was inadvertently omitted from inclusion in the Services to be received by such first Party under this Agreement (an “Omitted Service”), then, upon the prior written consent of the Party that would be Service Provider of
such Omitted Service (which consent shall not be unreasonably withheld), such Omitted Service shall be added and considered as part of the Services to be provided by such Service Provider. The Parties shall cooperate and act in good faith to reach
agreement on the fees and other specific terms and conditions applicable to such Omitted Service, provided that if such Omitted Service is substantially similar to any other Service provided by Services Provider under this Agreement, such
fees and other specific terms and conditions shall be substantially similar to the fees and other specific terms and conditions applicable to such other Services, and provided, further, that a 15% surcharge shall be added to any
fees applicable to an Omitted Service. Upon the Parties agreement on the fees and other specific terms and conditions applicable to an Omitted Service, the Parties shall execute an amendment to this Agreement that provides for the substitution of
the relevant Schedule, or additions of supplements to the relevant Schedule, in order to describe such Omitted Service and the agreement upon the related fees and other specific terms and conditions applicable thereto. 
  

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 (b)    Additional Services; Extension of Services Terms. In the event that the
Parties identify and agree upon (i) an additional service to be provided under this Agreement, as well as the related fees and other specific terms and conditions applicable thereto (an “Additional Service”), or (ii) an
extension of any particular Service Term for any Services Group, as well as the related fees and other specific terms and conditions applicable thereto, the Parties shall execute an amendment to this Agreement that provides for the substitution of
the relevant Schedule, or additions of supplements to the relevant Schedule, in order to describe such Additional Service or extension, and the agreed upon related fees and other specific terms and conditions applicable thereto. 
 2.9    Impracticability. Subject to the provisions of Section 2.11, Service Provider shall not be required to provide any
Service to the extent: (A) that the performance of the Services would (i) require Service Provider or any of its Affiliates to violate any applicable Laws (including any applicable codes or standards of conduct established by FERC or any
other Governmental Entity with respect to their activities subject to the jurisdiction of FERC or such other Governmental Entity) or any internal policy reasonably adopted in order to comply with any applicable Laws; (ii) result in the breach
of any software license, lease, or other Contract; or (iii) require prior approval of a Governmental Entity (except to the extent such approval has already been obtained); or (B) provided under Section 15.20. 
 2.10    Project Managers. Duke Energy shall designate to Spectra Energy at least one individual to whom all of Spectra
Energy’s communications may be addressed with respect to the Duke Energy Services and who has authority to act for and bind Duke Energy in all aspects with respect to the Duke Energy Services (the “Duke Energy Project
Manager”). Spectra Energy shall designate to Duke Energy at least one individual to whom all of Duke Energy’s communications may be addressed with respect to the Spectra Energy Services and who has authority to act for and bind Spectra
Energy in all aspects with respect to the Spectra Energy Services (the “Spectra Energy Project Manager”). The initial Duke Energy Project Manager designated by Duke Energy shall be Sean Trauschke and the initial Spectra Energy
Project Manager designated by Spectra Energy shall be Greg Harper. Notwithstanding the foregoing in this Section 2.10, the Parties acknowledge and agree that with respect to ordinary course of business communications between the Parties
regarding any relevant Service falling within any Services Group, such communications shall take place between each Party’s representative (or his or her designee) identified under the caption “CONTACTS” on the Schedule hereto that
includes such Services Group. 
 2.11    Cooperation. In the event that there is nonperformance of any Service as
a result of (i) a Force Majeure event described in Section 15.20, or (ii) impracticability pursuant to Section 2.9, the Parties agree to work together in good faith to arrange for an alternative means by which the applicable
Service Recipient may obtain, at its sole cost and expense, the Service so affected. The Parties and the members of their respective Groups shall cooperate with each other in connection with the performance of the Services, including producing on a
timely basis all Contracts, documents and other information that is reasonably requested with respect to the performance of Services; provided, however, that such cooperation shall not unreasonably disrupt the normal operations of the
Parties and the members of their respective Groups; and provided, further, however the Party requesting cooperation shall pay all reasonable out-of-pocket costs and expenses incurred by the Party or any members of its Group
furnishing such 

  

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requested cooperation, unless otherwise expressly provided in this Agreement or the Separation Agreement. 
  

	3.	Pricing. 

 3.1    Fees.

 (a)    Fees. In consideration of Service Provider’s performance of the relevant Services, Service
Recipient shall pay to Service Provider the fees prescribed on the relevant Schedules hereto (individually a “Fee” and collectively the “Fees”); provided that, in the event Service Recipient has not
caused itself or its Affiliates, as applicable, to obtain such relevant Service from an alternative third party service provider and/or otherwise terminated the provision of such relevant Service by the date that is 180 days after the Distribution
Date, then the Fee applicable to such Service shall be increased by 10% for the remainder of the applicable Services Term. 
 (b)    Invoices; Payment Procedures. Service Provider shall invoice Service Recipient on a monthly basis for all Fees accrued with respect to the prior month. Fees shall be payable by Service Recipient within
thirty (30) days after Service Recipient’s receipt of an invoice (the “Due Date”). All amounts (i) payable pursuant to the terms of this Agreement shall be paid to Service Provider as directed by Service Provider, and
(ii) due and payable hereunder shall be invoiced and paid in U.S. dollars, except as may be expressly provided in any relevant Schedule hereto. A Service Recipient’s obligation to make any required payments under this Agreement shall not
be subject to any unilateral right of offset, set-off, deduction or counterclaim, however arising. 
 (c)    Interest. In the absence of a timely notice of billing dispute in accordance with the provisions of Section 3.2, amounts not paid on or before the Due Date shall be payable with interest, accrued at
the then effective Prime Rate plus 2% (the “Default Interest Rate”) (or the maximum legal rate whichever is lower), calculated for the actual number of days elapsed, accrued from the Due Date until the date of the actual receipt of
payment. 
 (d)    Taxes. If any Governmental Entity shall impose a tax on the Services rendered to a Service
Recipient or its subsidiaries by Service Provider hereunder, Service Recipient agrees to pay, or remit to Service Provider so that Service Provider may pay, the amount of such tax imposed on the Services rendered to Service Recipient or its
subsidiaries by Service Provider under this Agreement. Notwithstanding anything to the contrary contained in this Agreement, Service Recipient shall have no liability for, and shall not be obligated to pay for, any property taxes of any kind or type
applicable to the property of Service Provider or any of its subsidiaries or any income taxes of any kind or type applicable to the income of Service Provider or any of its subsidiaries, except as may be expressly provided in any relevant Schedule
hereto. 
 3.2    Payment Disputes. In the event that Service Recipient disputes any invoice or portion thereof,
Service Recipient shall provide Service Provider prior to the Due Date written notice of the disputed amounts, together with a statement of the particulars of the dispute, including the calculations with respect to any errors or inaccuracies
claimed. Should Service Recipient fail to provide timely evidence of the invoice errors claimed on or before the Due 

  

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Date, the disputed amounts shall be owed with interest at the Default Interest Rate from the Due Date until payment is received. Should Service Recipient
provide the required information on or before the Due Date, Service Provider shall make a determination on the dispute no later than thirty (30) days from the Due Date. If Service Recipient has (i) underpaid the amount actually due,
Service Recipient shall remit any amount due plus interest at the Default Interest Rate from the Due Date until paid within five (5) Business Days after receipt of the determination from Service Provider, or (ii) overpaid the amount
actually due, Service Provider shall remit to Service Recipient any refund within five (5) Business Days after determination of such overpayment plus interest at the Default Interest Rate on such refund from the date Service Provider received
the overpayment until refunded. Notwithstanding any disputed invoice or portion thereof, Service Recipient shall nevertheless pay when due any undisputed amount of such invoice to Service Provider. 
 3.3    Expenses. In addition to the payment of all Fees, Service Recipient shall reimburse Service Provider for all reasonable
out-of-pocket costs and expenses incurred by Service Provider or its Affiliates in connection with providing the Services (including all travel-related expenses) to the extent that such costs and expenses are not reflected in the Fees for such
Services; provided, however, any such expenses exceeding $10,000 per month for any Services Group (other than routine business travel and related expenses) shall require advance approval of Service Recipient. Any travel-related
expenses incurred in performing the Services shall be incurred and charged to Service Recipient in accordance with Service Provider’s then applicable business travel policies. 
  

	4.	Services Term; Termination. 

 4.1    Services Term. The performance of the Services shall commence on the Distribution Date and, unless earlier terminated pursuant to Section 4.2 or 4.3, shall terminate on the earlier of
(i) December 31, 2007, or (ii) such earlier date as may be expressly provided for in the relevant Schedule hereto (the “Services Term”). 
 4.2    Termination. This Agreement or any specific Services Group, as specified below in this Section 4.2, may be terminated prior to the expiration of the relevant Services Term only
as follows: 
 (a)    with respect to all Duke Energy Services in any Services Group, by Spectra Energy by giving a
termination notice to Duke Energy, provided that (i) the termination will be effective as of the last day of the calendar month immediately following the calendar month in which Duke Energy receives such termination notice, and
(ii) Spectra Energy shall reimburse Duke Energy for any and all costs and expenses incurred by Duke Energy or any of its subsidiaries as a result of such early termination by Spectra Energy, including internal demobilization or incremental,
unplanned severance costs, and early termination fees and other costs incurred in order to terminate or reduce the level of services provided by third parties under Contracts with Duke Energy or any of its subsidiaries, which services are affected
by such early termination, such reimbursement to be due and payable on the Due Date following Spectra Energy’s receipt of any invoice from Duke Energy with respect to such costs and expenses, or, if there are no more Due Dates, within thirty
(30) days of Spectra Energy’s receipt of such invoice; 
  

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 (b)    with respect to all Spectra Energy Services in any Services Group, by Duke
Energy by giving a termination notice to Spectra Energy, provided that (i) the termination will be effective as of the last day of the calendar month immediately following the calendar month in which Spectra Energy receives such
termination notice, and (ii) Duke Energy shall reimburse Spectra Energy for any and all costs and expenses incurred by Spectra Energy or any of its subsidiaries as a result of such early termination by Duke Energy, including internal
demobilization or incremental, unplanned severance costs, and early termination fees and other costs incurred in order to terminate or reduce the level of services provided by third parties under Contracts with Spectra Energy or any of its
subsidiaries, which services are affected by such early termination, such reimbursement to be due and payable on the Due Date following Duke Energy’s receipt of any invoice from Spectra Energy with respect to such costs and expenses, or, if
there are no more Due Dates, within thirty (30) days of Duke Energy’s receipt of such invoice; 
 (c)    with
respect to all Services included in any Services Group that is adversely affected by a breach, by the non-breaching Party if the other Party fails to observe or perform in any material respect any term, obligation, or condition of this Agreement and
the defaulting Party does not cure such failure within fifteen (15) days after written demand by the first Party, provided that if the defaulting Party begins promptly and diligently to cure such breach in accordance with this
provision and such breach is not capable of being cured within such 15-day period, the defaulting Party shall have up to an additional fifteen (15) days to cure such breach if it demonstrates that it is reasonably capable of curing such breach
within such additional 15-day period; 
 (d)    with respect to the entire Agreement, by either Party if the other Party
makes a general assignment for the benefit of creditors, or files a voluntary petition in bankruptcy or for reorganization or rearrangement under the bankruptcy laws, or if a petition in bankruptcy is filed against such other Party and is not
dismissed within thirty (30) days after the filing, or if a receiver or trustee is appointed for all or a material portion of the property or assets used by the other Party to perform Services hereunder; or 
 (e)    with respect to all Services included in any Services Group that is adversely affected by a Force Majeure, by either Party if
Service Provider fails to perform in any material respect its obligation to perform any Services within such Services Group as a result of circumstances of Force Majeure and such Force Majeure continue to exist for at least sixty
(60) consecutive days. 
 4.3    Rights and Obligations Upon Termination. Upon expiration of the Services
Term or in the event of a termination pursuant to Section 4.2, no Party, nor any of its Affiliates, shall have any liability or further obligation to any other Party or any of its Affiliates pursuant to this Agreement, except: (i) that the
provisions of Sections 3 (to the extent of amounts accrued thereunder through the date of such expiration or termination), 4, 5, 6, 9, 11, 12, 13, 14 and 15 (as well as in each case associated defined terms) shall survive any such expiration or
termination and not be extinguished thereby; and (ii) any Party nevertheless shall be entitled to seek any remedy to which it may be entitled at law or in equity for the violation or breach by the other Party of any agreement, covenant,
representation, warranty, or indemnity contained in this Agreement that occurs prior to such expiration or termination. 
  

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	5.	Return of Leased Property or Licensed Software. 

 Service Recipient
shall be liable for all costs and expenses incurred by Service Provider or any of its subsidiaries resulting from any delay or failure of Service Recipient to return to Service Provider or any licensor, as applicable, any leased property or licensed
software that is included as part of the Services provided to such Service Recipient upon (i) the termination of the relevant Services as provided herein, or (ii) the expiration of the term of the applicable lease or license, provided that
Services Provider has provided Service Recipient with at least sixty (60) days prior written notice of such expiration. 
  

	6.	Disclaimer of Representations and Warranties. 

 EXCEPT AS EXPRESSLY PROVIDED IN SECTION 2.6, SECTION 15.22, OR OTHERWISE IN
ANY SCHEDULE HERETO, EACH PARTY ACKNOWLEDGES AND AGREES (I) THAT ALL SERVICES
ARE PROVIDED BY SERVICE PROVIDER ON AN “AS IS” BASIS, AND
(II) THAT NEITHER SERVICE PROVIDER NOR ANY MEMBER OF ITS GROUP MAKES
ANY REPRESENTATIONS OR WARRANTIES, WHETHER STATUTORY, EXPRESS, OR IMPLIED, TO
SERVICE RECIPIENT OR ANY OF ITS AFFILIATES WITH RESPECT TO THE
SERVICES, ANY EQUIPMENT OR MATERIALS PROVIDED UNDER THIS AGREEMENT, OR OTHERWISE
HEREUNDER, INCLUDING ANY WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE, OR ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF
TRADE.  
  

	7.	Effective Time. 

 This Agreement shall be effective as of the
Effective Time. 
  

	8.	Internal Controls and Procedures. 

 In addition to the record
retention requirements of the Separation Agreement, with respect to the Services for which each Service Provider is responsible, such Service Provider shall maintain and comply with such internal controls and procedures as are necessary to comply
with the Sarbanes-Oxley Act of 2002 or as otherwise agreed by the Parties to be implemented by the Parties to comply with internal controls and procedures or applicable Law. In the event a Service Recipient requires a change to the internal controls
or procedures, or requires the implementation of additional internal controls or procedures, related to the Services required to be provided to such Service Recipient in order for such Service Recipient to comply with changes to applicable Law,
Service Provider shall change or add to such Service Provider’s internal controls or procedures related to such Services as reasonably requested by such Service Recipient; provided, however, in connection with a Service Provider
changing or adding to internal controls or procedures as required by the foregoing, Service Recipient shall pay for any and all additional costs and expenses associated with the implementation or maintenance of the applicable change or addition;
provided, further, however, that if such change or addition is required for the compliance by both Parties with a Law applicable to both Parties, the Parties shall negotiate in good faith an equitable sharing of the costs and
expenses associated with such change or addition. 
  

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	9.	Books and Records; Audits. 

 9.1    Books and Records. Each Party shall keep and maintain books, records, accounts and other documents sufficient to reflect accurately and completely the transactions conducted, and all associated costs
incurred, pursuant to this Agreement. Such records shall include receipts, invoices, memoranda, vouchers, inventories, timesheets and accounts pertaining to the Services, as well as complete copies of all contracts, purchase orders, service
agreements and other such arrangements entered into in connection therewith. 
 9.2    Audit of Performance. Each
Party shall have access to and the right to inspect all records maintained by the other Party directly related to the Services, as is reasonably necessary for the purposes of verifying the other Party’s compliance with this Agreement, including
auditing and verifying costs or expenses claimed to be due and payable hereunder. Such access shall be available at reasonable times on Business Days during business hours and under reasonable conditions with a minimum of at least ten (10) days
prior written notice. Each Party shall keep and preserve all such records for a period of at least five (5) year from and after end of the relevant Services Term. 
 9.3    Audit Assistance. Each Party and its Subsidiaries are or may be subject to audit by Governmental Entities, such Party’s third party or internal auditor, such Party’s
customers, or other Persons that are parties to contracts with such Party, in each case pursuant to applicable Law, contractual provision, or request of such Party’s board of directors (or its audit committee) (an “Auditing
Entity”). If an Auditing Entity exercises its right to audit such first Party’s or any of its Subsidiary’s books, records, documents, accounting practices or procedures, internal controls and procedures, or operational, financial
or legal practices and procedures, and such audit relates to the Services required to be provided to, or from, such first Party hereunder, upon written request of such first Party, the other Party shall, within a reasonable period of time, provide,
at the sole cost and expense of such first Party, all assistance, records and access reasonably requested by such first Party in responding to such audits (including documents related to testing methodologies, test results, audit reports of
significant findings, and remediation plans with respect to any deficiencies with respect to such other Party’s internal controls or procedures, and work papers of such other Party’s third party or internal auditor that relate to the
matter being subject of such audit), to the extent that such assistance, records or access is within the reasonable control of such other Party. If an audit report of a Service Recipient’s third party or internal auditor relating to such audit
identifies any deficiencies in a Service Provider’s internal controls and procedures directly related to a Service provided to such Service Recipient, such Service Provider shall, at the sole cost and expense of such Service Recipient,
implement such reasonable changes to such Service to correct such deficiencies to ensure compliance with applicable Law in connection with such Service; provided, however, that if such correction is required for the compliance by both
Parties with a Law applicable to both Parties, the Parties shall negotiate in good faith an equitable sharing of the costs and expenses associated with such correction. 
  

	10.	Compliance with Laws and Governmental Requirements. 

 Each Party
shall be responsible for compliance with all Laws affecting its Business. Each Service Recipient shall be responsible for any use such Service Recipient may make of the 

  

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Services to assist it in complying with applicable Laws. Each Service Provider shall comply with (i) all Laws applicable to the provision by it of the
Services hereunder; and (ii) the accounting and reporting requirements of any Governmental Entity having jurisdiction over it or any member of its Group with respect to their respective activities related to such Service Provider’s
performance of the Services, including accounting for related costs pursuant to FERC’s uniform system of accounts. 
  

	11.	Limitation of Liability; Indemnity. 

 (a)    Service Provider’s Limitation of Liability. In no event shall a Service Provider or any of its Affiliates have any liability to a Service Recipient or any of its Affiliates whether under this Agreement
or otherwise in connection with performance hereunder, including for any error in judgment or any act or omission, except as a result of the gross negligence or willful misconduct of Service Provider or any of its Affiliates. In addition, neither
Duke Energy, Spectra Energy nor any of their respective Affiliates shall be liable for any loss of profits, loss of business, loss of use or of data, interruption of business, or for indirect, special, punitive, exemplary, incidental or
consequential damages of any kind whether under this Agreement or otherwise in connection with performance hereunder, even if the other Party has been advised of the possibility of such damages. 
 (b)    Service Recipient Indemnity. Service Recipient hereby agrees to indemnify, defend and hold harmless Service Provider
and each of its Affiliates from and against any and all claims, losses, demands, liabilities, costs and expenses (including reasonable attorneys’ fees and costs and expenses related thereto) suffered or incurred by Service Provider or any of
its Affiliates as a result of or in connection with any third party claims arising from Service Provider’s or any of its Affiliates’ performance of the Services hereunder, except to the extent such third party claims are based in whole or
in part on Service Provider’s or any of its Affiliates’ gross negligence or willful misconduct in performing the Services. 
 (c)    Service Provider Indemnity. Service Provider hereby agrees to indemnify, defend and hold harmless Service Recipient and each of its Affiliates from and against any and all claims, losses, demands,
liabilities, costs and expenses (including reasonable attorney’s fees and costs and expenses related thereto) suffered or incurred by Service Recipient or any of its Affiliates as a result of, or in connection with, any third party claims to
the extent caused by the gross negligence or willful misconduct of Service Provider or any of its Affiliates in performing the Services. In no event shall the aggregate liability of Service Provider and its Affiliates to Service Recipient and its
Affiliates for any damages concerning Service Provider’s or its Affiliates’ or subcontractors’ performance or nonperformance of the Services or any other matter arising out of, or related to, this Agreement (regardless of whether any
such claim for such damages is based in contract or in tort) exceed the amounts actually paid to Service Provider by Service Recipient pursuant to this Agreement. 
 (d)    Procedures. Any claim for indemnification under this Section 11 shall be governed by, and be subject to, the provisions of Article VII of the Separation Agreement, which
provisions are hereby incorporated by reference into this Agreement and any references to “Agreement” in such Article VII as incorporated herein shall be deemed to be references to this Agreement. 
  

 12 

	12.	Dispute Resolution. 

 Any controversy, dispute or claim arising out
of, in connection with, or in relation to the interpretation, performance, nonperformance, validity, termination or breach of this Agreement or otherwise arising out of, or in any way related to this Agreement or the transactions contemplated
hereby, including any claim based on contract, tort, statute or constitution (but excluding any controversy, dispute or claim arising out of any Contract relating to the use or lease of real property if any third party is a necessary party to such
controversy, dispute or claim) (collectively, “Agreement Dispute”), shall be governed by, and be subject to, the provisions of Article IX of the Separation Agreement, which provisions (and related defined terms) are hereby
incorporated by reference into this Agreement; provided, however, (i) any references to “Agreement” or “Agreement Disputes” in such Article IX as incorporated herein shall be deemed to be references to this
Agreement and Agreement Disputes as defined in this Agreement; (ii) the last sentence of Section 9.1(a) of the Separation Agreement (i.e., a dollar threshold for recourse with respect to “Agreement Disputes”) shall not be
incorporated by reference into, or have any effect with respect to, this Agreement; and (iii) the provisions of Section 9.12 of the Separation Agreement (Limitation on Actions) shall be revised to read as follows for purposes of this
Agreement: “Notwithstanding anything to the contrary in this Agreement, no Action shall be commenced (including the dispute resolution procedures set forth in this Article IX) by a Party against the other Party asserting any claim arising from
(i) breach of any obligation of such other Party to perform a Service under this Agreement more than one hundred and eighty (180) days after such first Party acquires, or reasonably should have acquired, knowledge of such breach, or
(ii) breach of any other obligation of such other Party under this Agreement more than 12 months after such first Party acquires, or reasonably should have acquired, knowledge of such breach; provided, however, regardless of such
first Party’s knowledge of the facts giving rise to its claim based on a breach of this Agreement, no Action shall be commenced by such first Party against the other Party more than 36 months after the occurrence of the initial event giving
rise to such claim for such breach (it being understood that if no such Action is commenced within such 180-day period, 12-month-period, or 36-month periods, as applicable, the breaching Party shall be discharged from liability for such
breach).” 
  

	13.	Property Rights; Trademark License. 

 13.1    No Transfer. The Parties acknowledge and agree that nothing in this Agreement is intended to transfer any right, title, or interest in and to any tangible, intangible, real or personal property (including
any and all intellectual property rights). Notwithstanding any materials, deliverables, or other products that may be created or developed by Service Provider or its Affiliates from the date hereof through the expiration or termination of the
Services Term, Service Provider does not hereby convey, nor does Service Recipient or any of its Affiliates hereby obtain, any right, title, or interest in or to any of Service Provider’s or any of its Affiliates’ equipment, materials,
deliverables, products, or any other rights or property used to provide the Services. All customer and personnel data, files and input and output materials and the media upon which they are located that are supplied by Service Recipient or any of
its Affiliates in connection with this Agreement shall remain Service Recipient’s or such Affiliate’s property, respectively, and Service Provider shall not have any rights or interests with respect thereto 
  

 13 

 13.2    Human Resources Branding. 
 (a)    Grant of Transitional License. Notwithstanding the requirements of Section 5.2(a) of the Separation Agreement or
Section 13.1 above, subject to the terms and conditions set forth in this Section 13.2, Duke Energy hereby grants to Spectra Energy, effective as of the Effective Date and terminating on December 31, 2007 (the “TM License
Period”), a limited, non-exclusive, royalty free and non-transferable license to use all trademarks owned by Duke Energy or any of its Subsidiaries (including the trademarks “Duke Energy” and “Duke Energy Corporation” or
any other trademark containing the word “Duke”) that are used by Duke Energy in connection with its human resources programs and systems as of the Effective Time (the “Duke Energy Trademarks”) solely in connection with the
operation of Spectra Energy’s human resources programs and systems (including use in connection with Spectra Energy’s websites, benefit manuals and correspondence with program participants); provided, however, that Spectra
Energy shall use its commercially reasonable efforts to substitute its own corporate identification for the corporate identification that includes the Duke Energy Trademarks in connection with such systems and programs as soon as reasonably
practicable after the Distribution Date, but in no event no event later than the expiration of the TM License Period. Spectra Energy agrees that immediately upon the expiration of the TM License Period, Spectra Energy shall cease all further use of
the Duke Energy Trademarks in connection with its human resources systems and programs and destroy any and all materials related thereto bearing the Duke Energy Trademarks. Spectra Energy shall neither sublicense the Duke Energy Trademarks, nor
shall Spectra Energy publish, distribute or otherwise use the Duke Energy Trademarks for any purpose other than as expressly provided in this Section 13.2. Spectra Energy shall use the Duke Energy Trademarks in accordance with sound trademark
usage principles and all applicable Laws as reasonably necessary to maintain the validity and enforceability of Duke Energy’s rights in such trademarks and Spectra Energy shall not use the Duke Energy Trademarks in any manner which might
tarnish, disparage, or reflect adversely on Duke Energy or the Duke Energy Trademarks. If Spectra Energy uses the Duke Energy Trademarks in a manner which Duke Energy, in its reasonable judgment, determines reflects adversely upon the image,
goodwill and reputation of Duke Energy or the Duke Energy Trademarks, then, upon receipt of written notice from Duke Energy identifying its objection, Spectra Energy shall immediately cease the particular use to which Duke Energy has objected.
Spectra Energy agrees to cooperate with and assist Duke Energy in protecting and enforcing Duke Energy’s rights in the Duke Energy Trademarks and in maintaining any registrations with any Governmental Entities for the Duke Energy Trademarks in
force. Spectra Energy shall assist Duke Energy in the enforcement of rights in the Duke Energy Trademarks by promptly informing Duke Energy of any actual or potential claim, demand, infringement, misuse or misappropriation relating to the Duke
Energy Trademarks to the extent that Spectra Energy is in possession of such information or otherwise becomes aware of any such actual or potential claim, demand, infringement, misuse or misappropriation. Duke Energy will have the sole right to
determine whether or not to investigate such alleged infringement and to determine whether to initiate or participate in any judicial or administrative proceeding involving the Duke Energy Trademarks. Duke Energy is and shall remain the sole owner
of the Duke Energy Trademarks and all goodwill associated therewith. Spectra Energy acknowledges that nothing herein gives Spectra Energy any right, title or interest in the Duke Energy Trademarks, apart from the license granted under this
Section 13.2(a), and in no event shall Spectra Energy’s use of the Duke Energy Trademarks be deemed to vest any right, title or interest to the Duke Energy Trademarks in Spectra Energy. All uses of the Duke Energy 

  

 14 

 
Trademarks by Spectra Energy, and all goodwill generated thereby, shall inure exclusively and completely to the benefit of Duke Energy. Spectra Energy,
agrees that it shall not contest or challenge the validity of, or Duke Energy’s title in, the Duke Energy Trademarks, and it shall not register or apply for registration of the Duke Energy Trademarks. 
 (b)    Notice and Disclaimer. Spectra Energy shall inform all of its and its Subsidiaries employees, retirees and other human
resources program participants by written notice as soon as reasonably practicable after the Distribution Date that Spectra Energy, and not Duke Energy, is responsible for the operation of Spectra Energy’s human resources programs or systems
after the Effective Time, and that Spectra Energy’s use of the Duke Energy Trademarks in connection with such human resources programs or systems does not imply any commitment or obligation on the part of Duke Energy or any of its subsidiaries
with respect to such individuals. Spectra Energy shall also include with any publication or distribution of the Duke Energy Trademarks for use in connection with its human resources programs or systems (i) a trademark legend readable to users
indicating that the Duke Energy Trademarks are owned solely by Duke Energy, but licensed to Spectra Energy for certain limited uses under a separate license agreement, and (ii) a disclaimer that Spectra Energy, and not Duke Energy, is
responsible for the operation of Spectra Energy’s human resources programs or systems after the Effective Time, and that Spectra Energy’s use of the Duke Energy Trademarks in connection with such human resources programs or systems does
not imply any commitment or obligation on the part of Duke Energy or any of its subsidiaries with respect to Spectra Energy’s or any of its subsidiaries’ employees, retirees and other human resources program participants. 
 (c)    Indemnity. Spectra Energy hereby agrees to indemnify, defend and hold harmless Duke Energy and each of its Affiliates
from and against any and all claims, losses, demands, liabilities, costs and expenses (including reasonable attorneys’ fees and costs and expenses related thereto) suffered or incurred by Duke Energy or any of its Affiliates as a result of or
in connection with any third party claims arising from Spectra Energy’s or any of its subsidiaries’ use of the Duke Energy Trademarks in connection with its human resources programs or systems. Notwithstanding anything to the contrary in
this Agreement, any claim for indemnification under this Section 13.2 shall not be governed by, or be subject to, the provisions of Section 11. 
  

	14.	Confidential Information. 

 Any Confidential Information received by
either Party or its Affiliates from the other Party or any of its Affiliates in connection with this Agreement shall be governed by, and be subject to, the provisions of Sections 8.2 and 8.4 of the Separation Agreement, which provisions are hereby
incorporated by reference into this Agreement and any references to “Agreement” in such Sections 8.2 and 8.4 as incorporated herein shall be deemed to be references to this Agreement. Notwithstanding anything to the contrary in this
Agreement, in connection with a Service Provider’s performance of the Services, (i) such Service Provider shall not have a right to access any Confidential Information of the Service Recipient or any of its Affiliates that is subject to
any attorney-client privilege or attorney work-product privilege under applicable Law in favor of such Service Recipient or any of its Affiliates; and (ii) the Parties shall cooperate with each other to establish reasonable procedures in
connection with the provision of Services in order to preserve such privileges. 
  

 15 

	15.	Miscellaneous. 

 15.1    Complete Agreement; Construction. This Agreement, including the Schedules attached to the body of this Agreement, shall constitute the entire agreement between the Parties with respect to the subject
matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. In the event of any conflict between the terms and conditions of the body of this Agreement and the terms and conditions of
any Schedule hereto, the terms and conditions of such Schedule shall control. In the event of any conflict between the terms and conditions of this Agreement and the terms and conditions of the Separation Agreement or any other Ancillary Agreement,
the terms and conditions of this Agreement shall control. 
 15.2    Counterparts. This Agreement may be executed
in more than one counterparts, all of which shall be considered one and the same agreement, and, except as expressly provided in Section 7, shall become effective when one or more such counterparts have been signed by each of the Parties and
delivered to the other Parties. Execution of this Agreement or any other documents pursuant to this Agreement by facsimile or other electronic copy of a signature shall be deemed to be, and shall have the same effect as, execution by original
signature. 
 15.3    Survival of Agreement. Except as otherwise contemplated by this Agreement, all covenants and
agreements of the Parties contained in this Agreement shall survive the Effective Time and remain in full force and effect in accordance with their applicable terms. 
 15.4    Expenses. Except as otherwise expressly provided in this Agreement, the Parties agree that all out-of-pocket fees and expenses incurred and directly related to the transactions
contemplated hereby shall be borne and paid by the Person incurring such cost or Liability. 
 15.5    Notices.
All notices, requests, claims, demands and other communications under this Agreement, as between the Parties, shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt unless the day of receipt
is not a Business Day, in which case it shall be deemed to have been duly given or made on the next following Business Day) by delivery in person, by overnight courier service, by facsimile with receipt confirmed (followed by delivery of an original
via overnight courier service) or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in
accordance with this Section 15.5): 
 To Duke Energy: 
 Duke Energy Corporation 
 526 South Church Street 
 Charlotte, North Carolina 28202 
 Attn: Chief
Legal Officer 
 Facsimile: 704-382-8137 
  

 16 

 To Spectra Energy: 
 Spectra Energy Corp 
 5400 Westheimer Court 
 Houston, Texas 77056 
 Attn: General Counsel

 Facsimile: 713-627-5536 
 15.6    Waivers. The failure of any Party to require strict performance by any other Party of any provision in this Agreement will not waive or diminish that Party’s right to demand strict performance
thereafter of that or any other provision hereof. 
 15.7    Amendments. Subject to the terms of
Section 15.10, this Agreement may not be modified or amended except by an agreement in writing signed by each of the Parties. 
 15.8    Assignment. Except as otherwise expressly provided for in this Agreement, this Agreement shall not be assignable, in whole or in part, by any Party without the prior written consent of the other Party, and
any attempt to assign any rights or obligations arising under this Agreement without such consent shall be null and void; provided, that a Party may assign this Agreement in connection with a merger transaction in which such Party is not the
surviving entity or the sale by such Party of all or substantially all of its Assets, and upon the effectiveness of such assignment, the assigning Party shall be released from all of its obligations under this Agreement if the surviving entity of
such merger or the transferee of such Assets shall agree in writing, in form and substance reasonably satisfactory to the other Party, to be bound by the terms of this Agreement as if named as a “Party” hereto. 
 15.9    Successors and Assigns. Subject to Section 15.8, the provisions of this Agreement and the obligations and rights
hereunder shall be binding upon, inure to the benefit of and be enforceable by (and against) the Parties and their respective successors and permitted transferees and assigns. 
 15.10    Termination. Notwithstanding anything to the contrary herein, this Agreement may be terminated and abandoned at any
time prior to the Effective Time by and in the sole discretion of Duke Energy without the approval of Spectra Energy or the stockholders of Duke Energy. In the event of such termination, no Party shall have any liability of any kind to any other
Party or any other Person. After the Effective Time, this Agreement may not be terminated except (i) by an agreement in writing signed by each of the Parties, or (ii) as expressly provided for in this Agreement. 
 15.11    Subsidiaries. Each of the Parties shall cause to be performed all actions, agreements and obligations set forth
herein to be performed by any Subsidiary or Affiliate of such Party or by any entity that becomes a Subsidiary or Affiliate of such Party on and after the Distribution Date. 
 15.12    Third Party Beneficiaries. Except as otherwise expressly provided in this Agreement, this Agreement is solely for the
benefit of the Parties and should not be deemed to 

  

 17 

 
confer upon third parties any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this
Agreement. 
 15.13    Title and Headings. Titles and headings to sections herein are inserted for the convenience
of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
 15.14    Schedules. The Schedules attached hereto are incorporated herein by reference and shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth
verbatim herein. 
 15.15    Governing Law. This Agreement shall be governed by and construed in accordance with
the internal Laws, and not the Laws governing conflicts of Laws (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law), of the State of New York. 
 15.16    Consent to Jurisdiction. Subject to the provisions of Section 12, each of the Parties irrevocably submits to the exclusive jurisdiction of (a) the Supreme Court of the
State of New York, New York County, and (b) the United States District Court for the Southern District of New York (the “New York Courts”), for the purposes of any suit, action or other proceeding to compel arbitration or for
provisional relief in aid of arbitration in accordance with Section 12 or for provisional relief to prevent irreparable harm, and to the non-exclusive jurisdiction of the New York Courts for the enforcement of any award issued thereunder. Each
of the Parties further agrees that service of any process, summons, notice or document by United States registered mail to such Party’s respective address set forth in Section 15.5 shall be effective service of process for any action, suit
or proceeding in the New York Courts with respect to any matters to which it has submitted to jurisdiction in this Section 15.16. Each of the Parties irrevocably and unconditionally waives any objection to the laying of venue of any action,
suit or proceeding arising out of this Agreement or the transactions contemplated hereby in the New York Courts, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit
or proceeding brought in any such court has been brought in an inconvenient forum. 
 15.17    Specific
Performance. The Parties agree that irreparable damage would occur in the event that the provisions of this Agreement were not performed in accordance with their specific terms. Accordingly, it is hereby agreed that the Parties shall be entitled
to (i) an injunction or injunctions to enforce specifically the terms and provisions hereof in any arbitration in accordance with Section 12, (ii) provisional or temporary injunctive relief in accordance therewith in any New York
Court, and (iii) enforcement of any such award of an arbitral tribunal or a New York Court in any court of the United States, or any other any court or tribunal sitting in any state of the United States or in any foreign country that has
jurisdiction, this being in addition to any other remedy or relief to which they may be entitled. 
 15.18    Waiver
of Jury Trial. SUBJECT TO SECTIONS 12, 15.16 AND 15.17 HEREIN, EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY COURT PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT 

  

 18 

 
OF AND PERMITTED UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HEREBY (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 15.18. 
 15.19    Severability. In the event any one or more of the provisions contained in this Agreement should be held invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, and the Parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
 15.20    Force Majeure. No Party (or any Person acting on its behalf) shall have any liability or responsibility for failure
to fulfill any obligation (other than a payment obligation) under this Agreement so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force
Majeure. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event: (a) notify the other Party of the nature and extent of any such Force Majeure condition, and (b) use
due diligence to remove any such causes and resume performance under this Agreement as soon as reasonably practicable. 
 15.21    Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring construction or
interpretation against the party drafting or causing any instrument to be drafted. 
 15.22    Authorization. Each
of the Parties hereby represents and warrants that it has the power and authority to execute, deliver and perform this Agreement, that this Agreement has been duly authorized by all necessary corporate action on the part of such Party, that this
Agreement constitutes a legal, valid and binding obligation of each such Party and that the execution, delivery and performance of this Agreement by such Party does not contravene or conflict with any provision of law or of its charter or bylaws or
any material agreement, instrument or order binding on such Party. 
 15.23    References; Interpretations.
References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural and vice versa. Unless the context otherwise requires: 
 (i)    the words “include”, “includes” and “including” when used in this Agreement
shall be deemed to be followed by the phrase “without limitation”; 
  

 19 

 (ii)    references in this Agreement to Sections and Schedules shall
be deemed references to Sections of, and Schedules attached to, this Agreement; 
 (iii)    the words
“hereof”, “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Section or provision of this Agreement; and 
 (iv)    references in this Agreement to any time shall be to New York City, New York time unless otherwise expressly
provided herein. 
 15.24    Status of Service Provider as Independent Contractor. Each Service Recipient
expressly acknowledges that each Service Provider, its Affiliates, and each of their respective employees, agents, subcontractors and representatives are “independent contractors,” and nothing in this Agreement is intended and nothing
shall be construed to create an employer/employee, partnership, joint venture or other similar relationship between any Service Recipient and Service Provider, its Affiliates, or each of their respective employees, agents, subcontractors and
representatives. In addition, each Service Provider shall have the authority and responsibility to elect the means, manner and method of performing the Services required to be provided by it under this Agreement. This Agreement shall not be
interpreted or construed to create an association, joint venture, partnership, or agency between the Parties or to impose any partnership or fiduciary obligation or related liability upon any Party. 
 [Signature Page Follows] 
  

 20 

 IN WITNESS WHEREOF, the Parties caused this Transition Services Agreement to be duly executed as of the
day and year first above written. 
  

			
	 Duke Energy:

	
	 DUKE ENERGY CORPORATION

		 	
	
		
	By:	 	/s/ James E. Rogers
	Name:	 	James E. Rogers
	Title:	 	President and Chief Executive Officer
	
	 SPECTRA ENERGY CORP

		
	By:	 	/s/ Fred J. Fowler
	Name:	 	Fred J. Fowler
	Title:	 	President and Chief Executive Officer

 Schedules and exhibits omitted pursuant to Item 601 of Reg. S-K. The Company agrees to furnish supplementally a copy of
any omitted schedule to the Commission upon request.Exhibit 10.3 Employee Matters Agreement

 Exhibit 10.3 
 EXECUTION COPY 
 EMPLOYEE MATTERS AGREEMENT 
 by and between 
 DUKE ENERGY
CORPORATION 
 AND 
 SPECTRA ENERGY CORP 
  
 Dated as of December 13,
2006 

 EMPLOYEE MATTERS AGREEMENT 
 This EMPLOYEE MATTERS AGREEMENT (the “Agreement”) is entered into as of December 13, 2006, by and between Duke Energy Corporation,
a Delaware corporation (“Duke Energy”), and Spectra Energy Corp (f/k/a Gas SpinCo, Inc.), a Delaware corporation (“Spectra Energy”), each a “Party” and together, the “Parties”.

 R E C I T A L S: 
 WHEREAS, Duke Energy, acting through its direct and indirect Subsidiaries, currently conducts a number of businesses, including (i) the Gas Business, and (ii) the Power Business; 
 WHEREAS, the Board of Directors of Duke Energy has determined that it is appropriate, desirable and in the best interests of Duke Energy and its
stockholders to separate Duke Energy into two separate, independent and publicly traded companies, (i) one comprising the Gas Business, which shall be owned and conducted, directly or indirectly, by Spectra Energy, and (ii) one comprising
the Power Business, which shall continue to be owned and conducted, directly or indirectly, by Duke Energy; 
 WHEREAS, to effect this
separation the Parties entered into that certain Separation and Distribution Agreement dated as of even date hereof (as amended or otherwise modified from time to time, the “Separation Agreement”); and 
 WHEREAS, pursuant to the Separation Agreement, Duke Energy and Spectra Energy have agreed to enter into this Agreement for the purpose of allocating
Assets, Liabilities and responsibilities with respect to certain employee compensation and benefit plans and programs between and among them. 
 NOW, THEREFORE, in consideration of the foregoing premises, the mutual promises and covenants hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties,
intending to be legally bound, agree as follows: 
 ARTICLE I 
 DEFINITIONS AND INTERPRETATION 
 Section 1.1 Definitions. Capitalized terms used, but not
defined herein shall have the meanings assigned to such terms in the Separation Agreement and the following terms shall have the following meanings: 
 “Agreement” shall have the meaning ascribed thereto in the preamble to this Agreement. 
 “Benefit
Plan” shall mean, with respect to an entity, each plan, program, arrangement, agreement or commitment that is an employment, consulting, non-competition or deferred compensation agreement, or an executive compensation, incentive bonus or
other bonus, 

  

 2 

 
employee pension, profit-sharing, savings, retirement, supplemental retirement, stock option, stock purchase, stock appreciation rights, restricted stock,
other equity-based compensation, severance pay, salary continuation, life, health, hospitalization, sick leave, vacation pay, disability or accident insurance plan, corporate-owned or key-man life insurance or other employee benefit plan, program,
arrangement, agreement or commitment, including any “employee benefit plan” (as defined in Section 3(3) of ERISA), sponsored or maintained by such entity (or to which such entity contributes or is required to contribute). 

“COBRA” shall mean the continuation coverage requirements for “group health plans” under Title X of the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended, and as codified in Code Section 4980B and Sections 601 through 608 of ERISA, together with all regulations and proposed regulations promulgated thereunder. 
 “Detrimental Conduct Provisions” shall mean any provisions that proscribe conduct of Duke Energy Employees, Spectra Energy Employees,
Former Duke Energy Employees or Former Spectra Energy Employees in their capacity as such, whether set forth in outstanding Duke Energy long-term incentive awards issued under the Duke Energy Stock Plans or otherwise, in each case as in effect from
time to time. 
 “DOL” shall mean the U.S. Department of Labor. 
 “Duke Energy” shall have the meaning ascribed thereto in the preamble to this Agreement. 
 “Duke Energy 401(k) Plan” shall mean the Duke Energy Retirement Savings Plan. 
 “Duke Energy Actuary” shall mean an independent actuary selected by Duke Energy. 
 “Duke Energy Benefit Plan” shall mean any Benefit Plan sponsored, maintained or contributed to by any member of the Duke Energy Group or
any ERISA Affiliate thereof immediately following the Distribution Date. 
 “Duke Energy Employee” shall mean any individual
who, immediately following the Distribution Date, remains employed by or will be employed by Duke Energy or any member of the Duke Energy Group, including active employees and employees on vacation and approved leave of absence (including maternity,
paternity, family, sick leave, qualified military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and leave under the Family Medical Leave Act and other approved leaves). 
 “Duke Energy Option” shall mean an option to purchase shares of Duke Energy Common Stock granted pursuant to one of the Duke Energy
Stock Plans. 
 “Duke Energy Participant” shall mean any individual who, immediately following the Distribution Date, is a
Duke Energy Employee, a Former Duke Energy Employee or a beneficiary, dependent or alternate payee of any of the foregoing. 
 “Duke
Energy Performance Share” shall mean a unit granted by Duke Energy or one of its 

  

 3 

 
Affiliates pursuant to one of the Duke Energy Stock Plans representing a general unsecured promise by Duke Energy or one of its Affiliates to deliver a share
of Duke Energy Common Stock or dividend equivalents, if applicable (or the cash equivalent of either), upon the satisfaction of a performance based vesting requirement. 
 “Duke Energy Phantom Stock Unit” shall mean a unit granted by Duke Energy or one of its Affiliates pursuant to one of the Duke Energy Stock Plans representing a general unsecured promise by Duke
Energy or one of its Affiliates to deliver a share of Duke Energy Common Stock or dividend equivalents, if applicable (or the cash equivalent of either), upon the satisfaction of a vesting requirement (other than performance based vesting
requirements). 
 “Duke Energy Reimbursement Account Plan” shall have the meaning ascribed thereto in Section 5.1(c) of
this Agreement. 
 “Duke Energy Restricted Share” shall mean a share of Duke Energy Common Stock granted by Duke Energy or
one of its Affiliates pursuant to one of the Duke Energy Stock Plans that is subject to forfeiture based on the extent of attainment of a vesting requirement. 
 “Duke Energy Retained Claim” shall have the meaning ascribed thereto in Section 8.4(a) of this Agreement. 
 “Duke Energy Retirement Plan” shall mean the Duke Energy Retirement Cash Balance Plan. 
 “Duke Energy RLR” means the retired lives reserve described in that certain Qualified Asset Account Agreement by and between Duke Power Company and Pilot Life Insurance Company and executed by Duke Power Company on
December 8, 1986 and Pilot Life Insurance Company on December 12, 1986, as it may have been amended from time to time. 
 “Duke Energy Service Plans” shall mean, collectively, the Duke Energy Retirement Plan, the Duke Energy 401(k) Plan, the Duke Energy Severance Plans and welfare benefit plans maintained by a member of the Duke Energy Group
to the extent eligibility for or level of benefits thereunder is dependent upon length of service, including the Duke Energy vacation, sick and retiree medical, dental and life programs. 
 “Duke Energy Severance Plans” shall mean, collectively, the plans listed on Schedule A attached hereto. 
 “Duke Energy SRP” shall mean, collectively, the plans listed on Schedule B attached hereto. 
 “Duke Energy Stock Plans” shall mean, collectively, the Duke Energy Corporation 2006 Long-Term Incentive Plan, the Duke Energy
Corporation 1998 Long-Term Incentive Plan, the Duke Energy Stock Incentive Option, the 1989 Westcoast Energy Inc. Long-Term Incentive Share Option Plan, the Cinergy Corp. 1996 Long-Term Incentive Compensation Plan, the Cinergy Corp. Stock Option
Plan, the Panhandle Eastern Corporation 1994 Long Term Incentive Plan and any 

  

 4 

 
other stock option or stock incentive compensation plan or arrangement maintained before the Distribution Date for employees, officers, non-employee
directors or other independent contractors of Duke Energy or its Affiliates, as amended (exclusive of the Spectra Energy Stock Plan and the 2006 Westcoast Energy, Inc. Long-Term Incentive Plan). 
 “Duke Energy Welfare Plans” shall have the meaning ascribed thereto in Section 5.1(a) of this Agreement. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
 “ERISA Affiliate” shall mean with respect to any Person, each business or entity which is a member of a “controlled group of
corporations,” under “common control” or a member of an “affiliated service group” with such Person within the meaning of Sections 414(b), (c) or (m) of the Code, or required to be aggregated with such Person under
Section 414(o) of the Code, or under “common control” with such Person within the meaning of Section 4001(a)(14) of ERISA. 
 “Estimated Retirement Plan Transfer Amount” shall have the meaning ascribed thereto in Section 3.2(b)(ii) of this Agreement. 
 “Final Retirement Plan Transfer Amount” shall have the meaning ascribed thereto in Section 3.2(b)(iv) of this Agreement. 
 “Final Transfer Date” shall have the meaning ascribed thereto in Section 3.2(b)(v) of this Agreement. 
 “Financed Nonqualified Plans” shall mean the plans listed on Schedule C attached hereto. 
 “Former Duke Energy Employee” shall mean, as of the Distribution Date, any individual listed on Exhibit A attached hereto or otherwise
described pursuant to the rules contained on Exhibit A attached hereto. 
 “Former Spectra Energy Employee” shall mean, as
of the Distribution Date, any individual listed on Exhibit B attached hereto or otherwise described pursuant to the rules contained on Exhibit B attached hereto. 
 “HIPAA” shall mean the Health Insurance Portability and Accountability Act of 1996, as amended. 
 “Initial Transfer Amount” shall have the meaning ascribed thereto in Section 3.2(b)(iii) of this Agreement. 
 “IRS” shall mean the U.S. Internal Revenue Service. 
 “New York Courts” shall have the meaning
ascribed thereto in Section 12.11 of this Agreement. 
  

 5 

 “Participating Company” shall mean Duke Energy or any Person (other than an individual)
participating in a Duke Energy Benefit Plan. 
 “Parties” shall have the meaning ascribed thereto in the preamble to this
Agreement. 
 “Post-Distribution Duke Energy Option” shall have the meaning ascribed thereto in Section 7.1(a) of this
Agreement. 
 “Post-Distribution Duke Energy Stock Price” shall mean the price of one share of Duke Energy Common Stock, as
determined based on the methodology set out in Schedule I attached hereto. 
 “Post-Distribution Spectra Energy Stock Price”
shall mean the price of one share of Spectra Energy Common Stock, as determined based on the methodology set out in Schedule I attached hereto. 
 “Pre-Distribution Duke Energy Option Price” shall have the meaning ascribed thereto in Section 7.1(b) of this Agreement. 
 “Rabbi Trust” shall, when immediately preceded by “Duke Energy,” mean, collectively, the trusts established in connection with the nonqualified deferred compensation plans maintained by the
Duke Energy Group and the Spectra Energy Group immediately before the Distribution (including the trusts established in connection with the Duke Energy SRP and the Spectra Energy Retained SRP) and, when immediately preceded by “Spectra
Energy,” means the trust or trusts to be established by Spectra Energy pursuant to Section 6.2(a) of this Agreement. 
 “Revised Retirement Plan Transfer Amount” shall have the meaning ascribed thereto in Section 3.2(b)(iv) hereof. 
 “Section 401(h) Amount” shall have the meaning ascribed thereto in Section 3.2(e) of this Agreement. 
 “Separation Agreement” shall have the meaning ascribed thereto in the recitals to this Agreement. 
 “Service Crediting Date” shall have the meaning ascribed thereto in Section 2.4(b)(i) of this Agreement. 
 “Spectra Energy” shall have the meaning ascribed thereto in the preamble to this Agreement. 
 “Spectra
Energy 401(k) Plan” shall have the meaning ascribed thereto in Section 4.1(a) of this Agreement. 
 “Spectra Energy
Actuary” shall mean an independent actuary selected by Spectra Energy. 
  

 6 

 “Spectra Energy Benefit Plan” shall mean any Benefit Plan sponsored, maintained or
contributed to by any member of the Spectra Energy Group or any ERISA Affiliate thereof immediately following the Distribution Date, including the Spectra Energy Retirement Plan, the Spectra Energy 401(k) Plan, the Spectra Energy Reimbursement
Account Plan, the Spectra Energy Nonqualified Plans, the Spectra Energy Severance Plans and the Spectra Energy Welfare Plans. 
 “Spectra Energy Employee” shall mean an active employee or an employee on vacation or on approved leave of absence (including maternity, paternity, family, sick leave, qualified military service under the Uniformed Services
Employment and Reemployment Rights Act of 1994, and leave under the Family Medical Leave Act and other approved leaves) who, immediately following the Distribution Date, is employed by or will be employed by Spectra Energy or any member of the
Spectra Energy Group. 
 “Spectra Energy Nonqualified Plans” shall have the meaning ascribed thereto in Section 6.1(b)
of this Agreement. 
 “Spectra Energy Option” shall mean an option to purchase shares of Spectra Energy Common Stock as of
the Distribution, which shall be issued pursuant to the Spectra Energy Stock Plan as part of the adjustment to Duke Energy Options in connection with the Distribution. 
 “Spectra Energy Participant” shall mean any individual who, immediately following the Distribution Date, is a Spectra Energy Employee, a Former Spectra Energy Employee, or a beneficiary, dependent or
alternate payee of any of the foregoing. 
 “Spectra Energy Performance Share” shall mean a unit issued by Spectra Energy or
one of its Affiliates representing a general unsecured promise by Spectra Energy or one of its Affiliates to deliver a share of Spectra Energy Common Stock or dividend equivalents, if applicable (or the cash equivalent of either), upon the
satisfaction of a performance based vesting requirement, which unit is issued pursuant to the Spectra Energy Stock Plan as part of the adjustment to Duke Energy Performance Shares in connection with the Distribution. 
 “Spectra Energy Phantom Stock Unit” shall mean a unit issued by Spectra Energy or one of its Affiliates representing a general unsecured
promise by Spectra Energy or one of its Affiliates to deliver a share of Spectra Energy Common Stock or dividend equivalents, if applicable (or the cash equivalent of either), upon the satisfaction of a vesting requirement, which unit is issued
pursuant to the Spectra Energy Stock Plan as part of the adjustment to Duke Energy Phantom Stock Units in connection with the Distribution. 
 “Spectra Energy Ratio” shall have the meaning ascribed thereto in Section 7.1(b) of this Agreement. 
 “Spectra Energy Reimbursement Account Plan” shall have the meaning ascribed thereto in Section 5.1(c) of this Agreement. 
 “Spectra Energy Restricted Share” shall mean a share of Spectra Energy Common Stock that is subject to forfeiture based on the extent of attainment of a vesting requirement, which share is issued
pursuant to the Spectra Energy Stock Plan as part of the adjustment to Duke Energy Restricted Shares in connection with the Distribution. 
  

 7 

 “Spectra Energy Retirement Plan” shall have the meaning ascribed thereto in
Section 3.1 of this Agreement. 
 “Spectra Energy Retirement Plan Participants” shall have the meaning ascribed thereto
in Section 3.1 of this Agreement. 
 “Spectra Energy Service Plans” shall mean, collectively, the Spectra Energy
Retirement Plan, the Spectra Energy 401(k) Plan, the Spectra Energy Severance Plans and welfare benefit plans maintained by a member of the Spectra Energy Group to the extent eligibility for or level of benefits thereunder is dependent upon length
of service, including the Spectra Energy vacation, sick and retiree medical, dental and life programs. 
 “Spectra Energy Severance
Plans” shall have the meaning ascribed thereto in Section 8.3(a) of this Agreement. 
 “Spectra Energy Stock
Plan” shall have the meaning ascribed thereto in Section 2.5 of this Agreement. 
 “Spectra Energy Welfare
Plans” shall have the meaning ascribed thereto in Section 5.1(a) of this Agreement. 
 “True-Up Amount” shall
have the meaning ascribed thereto in Section 3.2(b)(v) of this Agreement. 
 “U.S.” shall mean the United States of
America. 
 “VEBA” shall, when immediately preceded by “Duke Energy,” mean, collectively, the Trust Agreement For
Duke Energy Corporation Welfare Benefits Trust VEBA I and the Trust Agreement for Duke Energy Corporation Post-Retirement Medical Benefits Trust VEBA II, which are intended to be voluntary employees’ beneficiary associations under
Section 501(c)(9) of the Code and, when immediately preceded by “Spectra Energy,” means the voluntary employees’ beneficiary association trust or trusts to be established by Spectra Energy pursuant to Section 5.2(a) of this
Agreement. 
 1.2 References; Interpretation. References in this Agreement to any gender include references to all genders, and
references to the singular include references to the plural and vice versa. Unless the context otherwise requires, the words “include”, “includes” and “including” when used in this Agreement shall be deemed to be
followed by the phrase “without limitation”. Unless the context otherwise requires, references in this Agreement to Articles, Sections, Annexes, Exhibits and Schedules shall be deemed references to Articles and Sections of, and Annexes,
Exhibits and Schedules to, this Agreement. Unless the context otherwise requires, the words “hereof”, “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its
entirety and not to any particular Article, Section or provision of this Agreement. 
  

 8 

 ARTICLE II 
 GENERAL PRINCIPLES 
 Section 2.1 Assumption and Retention of Liabilities; Related Assets.

 (a) As of the Effective Time, except as otherwise expressly provided for in this Agreement, Duke Energy shall, or shall cause one or more
members of the Duke Energy Group to, assume or retain and Duke Energy hereby agrees to pay, perform, fulfill and discharge, in due course in full (i) all Liabilities under all Duke Energy Benefit Plans, (ii) all Liabilities (excluding
Liabilities incurred under a Benefit Plan except as otherwise provided in this Agreement) with respect to the employment, service, termination of employment or termination of service of all Duke Energy Employees and Former Duke Energy Employees and
their dependents and beneficiaries (and any alternate payees in respect thereof) and other service providers (including any individual who is, or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer,
agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker of any member of the Duke Energy Group or in any other employment, non-employment, or retainer arrangement, or relationship with any member of the Duke Energy
Group or whose employment or service is or was otherwise primarily associated with the Power Business), in each case to the extent arising in connection with or as a result of employment with or the performance of services for any member of the Duke
Energy Group or Spectra Energy Group, and (iii) any other Liabilities or obligations expressly assigned to Duke Energy or any of its Affiliates under this Agreement. For purposes of clarification, the Liabilities assumed or retained by the Duke
Energy Group as provided for in this Section 2.1(a) are intended to be Power Liabilities as such term is defined in the Separation Agreement. 
 (b) As of the Effective Time, except as otherwise expressly provided for in this Agreement, Spectra Energy shall, or shall cause one or more members of the Spectra Energy Group to, assume or retain, as applicable, and Spectra Energy hereby
agrees to pay, perform, fulfill and discharge, in due course in full (i) all Liabilities under all Spectra Energy Benefit Plans, (ii) all Liabilities (excluding Liabilities incurred under a Benefit Plan except as otherwise provided in this
Agreement) with respect to the employment, service, termination of employment or termination of service of all Spectra Energy Employees and Former Spectra Energy Employees and their dependents and beneficiaries (and any alternate payees in respect
thereof) and other service providers (including any individual who is, or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, or
non-payroll worker of any member of the Spectra Energy Group or in any other employment, non-employment, or retainer arrangement, or relationship with any member of the Spectra Energy Group or whose employment or service is or was otherwise
primarily associated with the Gas Business), in each case to the extent arising in connection with or as a result of employment with or the performance of services for any member of the Duke Energy Group or Spectra Energy Group, and (iii) any
other Liabilities or obligations expressly assigned to Spectra Energy or any of its Affiliates under this Agreement. For purposes of clarification, the Liabilities assumed or retained by the Spectra Energy Group as provided for in this
Section 2.1(b) are intended to be Gas Liabilities as such term is defined in the Separation Agreement. 
  

 9 

 (c) From time to time after the Distribution, Spectra Energy shall promptly reimburse Duke Energy, upon
Duke Energy’s reasonable request and the presentation by Duke Energy of such substantiating documentation as Spectra Energy shall reasonably request, for the cost of any obligations or Liabilities satisfied or assumed by Duke Energy or its
Affiliates that are, or that have been made pursuant to this Agreement, the responsibility of Spectra Energy or any of its Affiliates. Except as otherwise provided in Section 5.1(f)(ii) of this Agreement, any such request for reimbursement must
be made by Duke Energy not later than the first anniversary of the Distribution. 
 (d) From time to time after the Distribution, Duke Energy
shall promptly reimburse Spectra Energy, upon Spectra Energy’s reasonable request and the presentation by Spectra Energy of such substantiating documentation as Duke Energy shall reasonably request, for the cost of any obligations or
Liabilities satisfied or assumed by Spectra Energy or its Affiliates that are, or that have been made pursuant to this Agreement, the responsibility of Duke Energy or its Affiliates. Any such request for reimbursement must be made by Spectra Energy
not later than the first anniversary of the Distribution. 
 (e) All Liabilities under all Duke Energy Benefit Plans and Spectra Energy
Benefit Plans and all Liabilities (excluding Liabilities incurred under a Benefit Plan except as otherwise provided in this Agreement) with respect to the employment, service, termination of employment or termination of service of all Duke Energy
Employees, Former Duke Energy Employees, Spectra Energy Employees and Former Spectra Energy Employees and their dependents and beneficiaries (and any alternate payees in respect thereof) and other service providers (including any individual who is,
or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker of any member of the Duke Energy Group or Spectra
Energy Group or in any other employment, non-employment, or retainer arrangement, or relationship with any member of the Duke Energy Group or Spectra Energy Group), in each case to the extent arising in connection with or as a result of employment
with or the performance of services for any member of the Duke Energy Group or Spectra Energy Group, that are not allocated pursuant to the terms of this Agreement shall be treated as Unallocated Liabilities under the Separation Agreement.

 Section 2.2 Spectra Energy Participation in Duke Energy Benefit Plans. Except as otherwise expressly provided for in this
Agreement or as otherwise expressly agreed to in writing between the Parties, (i) effective as of the Distribution Date, Spectra Energy and each member of the Spectra Energy Group shall cease to be a Participating Company in any Duke Energy
Benefit Plan, and (ii) each Spectra Energy Participant and any other service providers (including any individual who is, or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee,
leased employee, on-call worker, incidental worker, or nonpayroll worker of any member of the Duke Energy Group or the Spectra Energy Group or in any other employment, non-employment, or retainer arrangement, or relationship with any member of the
Duke Energy Group or the Spectra Energy Group), effective as of the 

  

 10 

 
Distribution Date, shall cease to participate in, be covered by, accrue benefits under, be eligible to contribute to or have any rights under any Duke Energy
Benefit Plan, and Duke Energy and Spectra Energy shall take all necessary action to effectuate each such cessation. 
 Section 2.3
Comparable Compensation and Benefits. Except as otherwise agreed to by Duke Energy, Spectra Energy (acting directly or through its Affiliates) initially intends to provide Spectra Energy Employees with compensation opportunities (including
salary, wages, commissions and bonus opportunities) and employee benefits that are generally comparable, in the aggregate, to the compensation opportunities and employee benefits to which such Spectra Energy Employees were entitled to immediately
prior to the Distribution Date. 
 Section 2.4 Service Recognition. 
 (a) Pre-Distribution Service Credit. Spectra Energy shall give each Spectra Energy Participant full credit for purposes of eligibility, vesting,
determination of level of benefits, and, to the extent applicable, benefit accruals under any Spectra Energy Benefit Plan for such Spectra Energy Participant’s service with any member of the Duke Energy Group prior to the Distribution Date to
the same extent such service was recognized by the applicable Duke Energy Benefit Plans immediately prior to the Distribution Date; provided, that, such service shall not be recognized to the extent that such recognition would result
in the duplication of benefits. 
 (b) Post-Distribution Reciprocal Service Crediting. Each of Duke Energy and Spectra Energy (acting
directly or through their respective Affiliates) shall cause each of the Duke Energy Service Plans and the Spectra Energy Service Plans, respectively, to provide the following service crediting rules effective as of the Distribution Date:

 (i) If a Duke Energy Employee who participates in any of the Duke Energy Service Plans becomes employed by a member of the
Spectra Energy Group prior to the first anniversary of the Distribution Date (or such later date as mutually agreed to by the Parties) (the “Service Crediting Date”) and such Duke Energy Employee is continuously employed by the Duke
Energy Group from the Distribution Date through the date such Duke Energy Employee commences active employment with a member of the Spectra Energy Group, then such Duke Energy Employee’s service with the Duke Energy Group following the
Distribution Date shall be recognized for purposes of eligibility, vesting and level of benefits under the appropriate Spectra Energy Service Plans, in each case to the same extent as such Duke Energy Employee’s service with the Duke Energy
Group was recognized under the corresponding Duke Energy Service Plans. 
 (ii) If a Duke Energy Employee who participates in
any of the Duke Energy Service Plans becomes employed by a member of the Spectra Energy Group either (A) on or after the Service Crediting Date or (B) without having been continuously employed by the Duke Energy Group from the Distribution
Date through the date such Duke Energy Employee commences active employment with a member of the Spectra Energy Group, then, except to the extent required by applicable Law, such individual’s service with the Duke Energy Group following the
Distribution Date will not be recognized for any purpose under any Spectra Energy Service Plan. 
  

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 (iii) If a Spectra Energy Employee who participates in any of the Spectra Energy Service
Plans becomes employed by a member of the Duke Energy Group prior to the Service Crediting Date and such Spectra Energy Employee is continuously employed by the Spectra Energy Group from the Distribution Date through the date such Spectra Energy
Employee commences active employment with a member of the Duke Energy Group, then such Spectra Energy Employee’s service with the Spectra Energy Group following the Distribution Date shall be recognized for purposes of eligibility, vesting and
level of benefits under the appropriate Duke Energy Service Plans, in each case to the same extent as such Spectra Energy Employee’s service with the Spectra Energy Group was recognized under the corresponding Spectra Energy Service Plans.

 (iv) If a Spectra Energy Employee who participates in any of the Spectra Energy Service Plans becomes employed by a member
of the Duke Energy Group either (A) on or after the Service Crediting Date or (B) without having been continuously employed by the Spectra Energy Group from the Distribution Date through the date such Spectra Energy Employee commences
active employment with a member of the Duke Energy Group, then the corresponding Duke Energy Service Plans will only take into consideration such individual’s service with the Duke Energy Group and the Spectra Energy Group, in each case, prior
to the Distribution Date and, thus, except to the extent required by applicable Law, such Spectra Energy Employee’s service with the Spectra Energy Group following the Distribution Date will not be recognized for any purpose under any Duke
Energy Service Plan. 
 (v) Nothing herein shall limit Duke Energy or Spectra Energy or their respective Affiliates from
recognizing service in addition to the recognition of service required hereunder. 
 Section 2.5 Approval by Duke Energy As Sole
Stockholder. Effective as of the Distribution Date, Spectra Energy shall have adopted the Spectra Energy 2007 Long-Term Incentive Plan (the “Spectra Energy Stock Plan”) which shall permit the issuance of long-term incentive
awards that have material terms and conditions substantially similar to those long-term incentive awards issued under the relevant Duke Energy Stock Plans that are to be substituted with Spectra Energy long-term incentive awards in connection with
the Distribution. The Spectra Energy Stock Plan and the annual incentive plan adopted by Spectra Energy in accordance with Section 8.1(c) of this Agreement shall be approved prior to the Distribution by Duke Energy as Spectra Energy’s sole
shareholder. 
 Section 2.6 Transfer of Assets. Assets, if any, attributable to the Liabilities referenced in the preceding
provisions of this Article II shall be allocated (if applicable) as provided in the remaining provisions of this Agreement. 
  

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 ARTICLE III 
 U.S. QUALIFIED DEFINED BENEFIT PLAN 
 Section 3.1 Establishment of Spectra Energy Plan.
Effective as of the Distribution Date, Spectra Energy shall, or shall have caused one or more members of the Spectra Energy Group to, establish a defined benefit pension plan and related trust to provide retirement benefits to Spectra Energy
Participants who immediately prior to the Distribution Date were participants in, or entitled to present or future benefits (except as provided in Section 3.2(d) of this Agreement, whether or not vested) under, the Duke Energy Retirement Plan
(such defined benefit pension plan, the “Spectra Energy Retirement Plan” and such Spectra Energy Participants, the “Spectra Energy Retirement Plan Participants”). Spectra Energy shall be responsible for taking all
necessary, reasonable, and appropriate action to establish, maintain and administer the Spectra Energy Retirement Plan so that it is qualified under Section 401(a) of the Code and that the related trust thereunder is exempt under
Section 501(a) of the Code. Spectra Energy (acting directly or through its Affiliates) shall be responsible for any and all Liabilities (including Liability for funding) and other obligations with respect to the Spectra Energy Retirement Plan.

 Section 3.2 Spectra Energy Participants. 
 (a) Assumption of Duke Energy Retirement Plan Liabilities. Effective as of the Distribution Date, Spectra Energy (acting directly or through its Affiliates) hereby agrees to cause the Spectra Energy Retirement
Plan to assume, fully perform, pay and discharge, all Liabilities under the Duke Energy Retirement Plan relating to all Spectra Energy Retirement Plan Participants as of the Distribution Date. 
 (b) Transfer of Duke Energy Retirement Plan Assets. 
 (i) The Parties intend that the portion of the Duke Energy Retirement Plan covering Spectra Energy Retirement Plan Participants shall be transferred to the Spectra Energy Retirement Plan in accordance with
Section 414(l) of the Code, Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA. Any surplus Assets under the Duke Energy Retirement Plan (i.e., any Assets held under the Duke Energy Retirement Plan that are in excess of
the Assets required to be allocated to the Duke Energy Retirement Plan and the Spectra Energy Retirement Plan in accordance with the preceding sentence) shall be transferred to the Spectra Energy Retirement Plan in the same proportion as the other
Assets of the Duke Energy Retirement Plan are transferred to the Spectra Energy Retirement Plan in accordance with the succeeding provisions of this subsection (b)). No later than thirty (30) days prior to the Distribution Date, Duke Energy and
Spectra Energy (acting directly or through their respective Affiliates) shall, to the extent necessary, file an IRS Form 5310-A regarding the transfer of Assets and Liabilities from the Duke Energy Retirement Plan to the Spectra Energy Retirement
Plan. 
 (ii) Prior to the Distribution Date (or such later time as mutually agreed by the Parties), Duke Energy shall cause the Duke Energy
Actuary to determine the estimated value, as of the Distribution Date, of the Assets to be transferred to the Spectra Energy Retirement Plan in accordance with the assumptions and valuation methodology set forth on Schedule D attached hereto (the
“Estimated Retirement Plan Transfer Amount”). 
 (iii) Not later than ten (10) Business Days following the
Distribution Date (or such later time as mutually agreed by the Parties), Duke Energy and Spectra Energy (each 

  

 13 

 
acting directly or through their respective Affiliates) shall cooperate in good faith to cause an initial transfer of Assets from the Duke Energy Retirement
Plan to the Spectra Energy Retirement Plan in an amount equal (as determined in the discretion of Duke Energy) to not less than eighty-five percent (85%) and not more than ninety-five percent (95%) of the Estimated Retirement Plan Transfer
Amount (such amount, the “Initial Transfer Amount”). Duke Energy shall satisfy its obligation pursuant to this Section 3.2(b)(iii) by causing the Duke Energy Retirement Plan to transfer Assets, in kind, equal to the Initial
Transfer Amount. 
 (iv) Within one hundred eighty (180) days (or such later time as mutually agreed by the Parties) following the
Distribution Date, Duke Energy shall cause the Duke Energy Actuary to provide Spectra Energy with a revised calculation of the value, as of the Distribution Date, of the Assets to be transferred to the Spectra Energy Retirement Plan determined in
accordance with the assumptions and valuation methodology set forth on Schedule D attached hereto (the “Revised Retirement Plan Transfer Amount”). Spectra Energy may submit, at its sole cost and expense, the Revised Retirement Plan
Transfer Amount to the Spectra Energy Actuary for verification; provided, that, such verification process and any calculation performed by the Spectra Energy Actuary in connection therewith shall be performed solely on the basis of the
assumptions and valuation methodology set forth on Schedule D attached hereto. In order to perform such verification, upon request from Spectra Energy, the Spectra Energy Actuary will receive the data and additional detailed methodology used to
calculate the Initial Transfer Amount and the Final Retirement Plan Transfer Amount (if reasonably needed) from the Duke Energy Actuary. Spectra Energy will be responsible for the cost and expense of the Spectra Energy Actuary and Duke Energy will
be responsible for the cost and expense for the Duke Energy Actuary for such data transfer. In the event the Spectra Energy Actuary so determines that the value, as of the Distribution Date, of the Assets to be transferred to the Spectra Energy
Retirement Plan differs from the Revised Retirement Plan Transfer Amount, the Spectra Energy Actuary shall identify in writing to the Duke Energy Actuary all objections to the determination within sixty (60) days following provision of the
revised value calculation to Spectra Energy pursuant to the first sentence of this paragraph (iv), and the Spectra Energy Actuary and Duke Energy Actuary shall use good faith efforts to reconcile any such difference. If the Spectra Energy Actuary
and the Duke Energy Actuary fail to reconcile such difference, the Spectra Energy Actuary and the Duke Energy Actuary shall jointly designate a third, independent actuary whose calculation of the value, as of the Distribution Date, of the Assets to
be transferred to the Spectra Energy Retirement Plan shall be final and binding; provided, that, such calculation must be performed within sixty (60) days following designation of such third actuary and in accordance with the
assumptions and valuation methodology set forth on Schedule D attached hereto; and provided, further, that such value shall be between the value determined by the Spectra Energy Actuary and the Revised Retirement Plan Transfer Amount
or equal to either such value. Duke Energy and Spectra Energy shall each pay one-half of the costs incurred in connection with the retention of such independent actuary. The final, verified value, as of the Distribution Date, of the Assets to be
transferred to the Spectra Energy Retirement Plan as determined in accordance with this Section 3.2(b)(iv) shall be referred to herein as the “Final Retirement Plan Transfer Amount.” 
 (v) Within forty-five (45) days (or such later time as mutually agreed by the Parties) of the determination of the Final Retirement Plan Transfer
Amount, Duke Energy shall cause the Duke Energy Retirement Plan to transfer to the Spectra Energy Retirement Plan (the date 

  

 14 

 
of such transfer, the “Final Transfer Date”) an amount (as determined by Duke Energy in its discretion, in kind, in cash, cash-like
securities or other cash equivalents), equal to (A) the Final Retirement Plan Transfer Amount minus (B) the Initial Transfer Amount (such difference, as adjusted to reflect earnings or losses as described below, the “True-Up
Amount”); provided, that, in the event the True-Up Amount is negative, Duke Energy shall not be required to cause any such additional transfer and instead Spectra Energy shall be required to cause a transfer of cash, cash-like
securities or other cash equivalents (or, if determined by Duke Energy in its discretion, assets in kind) from the Spectra Energy Retirement Plan to the Duke Energy Retirement Plan in amount equal to the True-Up Amount. The Parties acknowledge that
the Duke Energy Retirement Plan’s transfer of the True-Up Amount to the Spectra Energy Retirement Plan shall be in full settlement and satisfaction of the obligations of Duke Energy to cause the transfer of, and the Duke Energy Retirement Plan
to transfer, Assets to the Spectra Energy Retirement Plan pursuant to this Section 3.2(b)(v). 
 The True-Up Amount shall be paid from
the Duke Energy Retirement Plan to the Spectra Energy Retirement Plan, as determined by Duke Energy in its discretion in kind, in cash, cash-like securities or other cash equivalents, and shall be adjusted to reflect earnings or losses during the
period from the Distribution Date to the Final Transfer Date. Such earnings or losses shall be determined based on the actual rate of return of the Duke Energy Retirement Plan for the period commencing on the first day of the calendar month in which
the Distribution Date occurs and ending on the last calendar day of the month ending immediately prior to the Final Transfer Date. Earnings or losses for the period from such last day of the month to the Final Transfer Date shall be based on the
actual rate of return of the Duke Energy Retirement Plan during the last calendar month ending immediately prior to the Final Transfer Date determined as of the date that is as close as administratively practicable to the Final Transfer Date. In the
event that Spectra Energy is obligated to cause the Spectra Energy Retirement Plan to reimburse the Duke Energy Retirement Plan pursuant to this Section 3.2(b)(v), such reimbursement shall be performed in accordance with the same principles set
forth herein with respect to the payment of the True-Up Amount. The Parties acknowledge that the Spectra Energy Retirement Plan’s transfer of such reimbursement amount to the Duke Energy Retirement Plan shall be in full settlement and
satisfaction of the obligations of Spectra Energy to cause the transfer of, and the Spectra Energy Retirement Plan to transfer, Assets to the Duke Energy Retirement Plan pursuant to this Section 3.2(b)(v). 
 (c) Continuation of Elections. As of the Distribution Date, Spectra Energy (acting directly or through its Affiliates) shall cause the Spectra
Energy Retirement Plan to recognize and maintain all existing elections, including, but not limited to, beneficiary designations, payment form elections and rights of alternate payees under qualified domestic relations orders with respect to Spectra
Energy Retirement Plan Participants under the Duke Energy Retirement Plan. 
 (d) Terminated Non-Vested Employees. Notwithstanding
anything herein to the contrary, the Duke Energy Retirement Plan will retain all Liabilities (if any) earned under the Duke Energy Retirement Plan in respect of any individual who becomes employed by any member of the Spectra Energy Group following
the Distribution Date and whose employment with the Duke Energy Group terminated on or before the Distribution Date with no vested benefit under the Duke Energy Retirement Plan. 
  

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 (e) 401(h) Accounts. The calculations of the Estimated Retirement Plan Transfer Amount and the
Final Retirement Plan Transfer Amount described above shall be determined without regard to the value of retiree health benefit Liabilities that are funded in whole or in part through the account maintained under the Duke Energy Retirement Plan
pursuant to Section 401(h) of the Code. Within one hundred eighty (180) days (or such later time as mutually agreed by the Parties) following the Distribution Date, Duke Energy shall cause the present value of such amount (the
“Section 401(h) Amount”) to be determined as of the Distribution Date by the Duke Energy Actuary using the actuarial assumptions set forth in Schedule E attached hereto (subject to the same dispute resolution procedures that apply
in respect of the Final Retirement Plan Transfer Amount pursuant to Section 3.2 (b)(iv) above). On or before the Final Transfer Date (and subject to the same provisions regarding transfer of the True-Up Amount), Duke Energy shall cause the Duke
Energy Retirement Plan to transfer to the Spectra Energy Retirement Plan a portion of the Assets in the account maintained in the Duke Energy Retirement Plan pursuant to Section 401(h) of the Code, which portion shall be determined as provided
in Schedule E attached hereto. 
 Section 3.3 Certain Annuities. Effective as of the Distribution Date, Duke Energy shall assign
to Spectra Energy, and Spectra Energy shall assume, all rights and obligations under the annuity contracts set forth on Schedule F attached hereto. 
 ARTICLE IV 
 U.S. QUALIFIED DEFINED CONTRIBUTION PLAN 
 Section 4.1 Duke Energy 401(k) Plan; Spectra Energy 401(k) Plan. 
 (a) Establishment of the
Spectra Energy 401(k) Plan. Effective as of the Distribution Date, Spectra Energy shall, or shall have caused one of its Affiliates to, establish a defined contribution plan and trust for the benefit of Spectra Energy Participants (the
“Spectra Energy 401(k) Plan”). Spectra Energy shall be responsible for taking all necessary, reasonable and appropriate action to establish, maintain and administer the Spectra Energy 401(k) Plan so that it is qualified under
Section 401(a) of the Code and that the related trust thereunder is exempt under Section 501(a) of the Code. Spectra Energy (acting directly or through its Affiliates) shall be responsible for any and all Liabilities and other obligations
with respect to the Spectra Energy 401(k) Plan. 
 (b) Transfer of Duke Energy 401(k) Plan Assets. Not later than thirty
(30) days following the Distribution Date (or such later time as mutually agreed by the Parties), Duke Energy shall cause the accounts (including any outstanding loan balances) in the Duke Energy 401(k) Plan attributable to Spectra Energy
Participants and all of the Assets in the Duke Energy 401(k) Plan related thereto to be transferred in-kind to the Spectra Energy 401(k) Plan, and Spectra Energy shall cause the Spectra Energy 401(k) Plan to accept such transfer of accounts and
underlying Assets and, effective as of the date of such transfer, to assume and to fully perform, pay and discharge, all obligations of the Duke Energy 401(k) Plan relating to the accounts of Spectra Energy Participants (to the extent the Assets
related to those accounts are actually transferred from the Duke Energy 401(k) Plan to the Spectra Energy 401(k) Plan) as of the Distribution Date. The transfer of Assets shall be conducted in accordance with Section 414(l) of the Code,
Treasury Regulation Section 1.414(1)-1, and Section 208 of ERISA. 
  

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 (c) Continuation of Elections. As of the Distribution Date, Spectra Energy (acting directly or
through its Affiliates) shall cause the Spectra Energy 401(k) Plan to recognize and maintain all Duke Energy 401(k) Plan elections, including, but not limited to, deferral, investment, and payment form elections, ESOP dividend elections, beneficiary
designations, and the rights of alternate payees under qualified domestic relations orders with respect to Spectra Energy Participants, to the extent such election or designation is available under the Spectra Energy 401(k) Plan. 
 (d) Employer Securities. To the extent not already required by applicable Law, Duke Energy and Spectra Energy each presently intend to preserve
the right of Duke Energy Participants and Spectra Energy Participants, respectively, to receive distributions in kind from, respectively, the Duke Energy 401(k) Plan and the Spectra Energy 401(k) Plan, if, and to the extent, of investments under
such plans in investment funds comprised of Duke Energy Common Stock or Spectra Energy Common Stock. 
 (e) Form 5310-A. No later than
thirty (30) days prior to the Distribution Date, Duke Energy and Spectra Energy (each acting directly or through their respective Affiliates) shall, to the extent necessary, file IRS Form 5310-A regarding the transfer of Assets and Liabilities
from the Duke Energy 401(k) Plan to the Spectra Energy 401(k) Plan as discussed in this Article IV. 
 Section 4.2 Contributions as
of the Distribution Date. All contributions payable to the Duke Energy 401(k) Plan with respect to employee deferrals and contributions, matching contributions and other contributions for Spectra Energy Participants through the Distribution
Date, determined in accordance with the terms and provisions of the Duke Energy 401(k) Plan, ERISA and the Code, shall be paid by Duke Energy to the Duke Energy 401(k) Plan prior to the date of the Asset transfer described in Sections 4.1(b) of this
Agreement. 
 ARTICLE V 
 U.S.
HEALTH AND WELFARE PLANS 
 Section 5.1 Health And Welfare Plans Maintained By Duke Energy Prior To The Distribution Date.

 (a) Establishment of the Spectra Energy Welfare Plans. Duke Energy or one or more of its Affiliates maintain each of the health and
welfare plans set forth on Schedule G attached hereto (the “Duke Energy Welfare Plans”) for the benefit of eligible Duke Energy Participants and Spectra Energy Participants. Effective as of the Distribution Date, Spectra Energy
shall, or shall cause a Spectra Energy Affiliate to, adopt, for the benefit of eligible Spectra Energy Participants, health and welfare plans, the terms of which are substantially comparable, in the aggregate, to the applicable terms of the Duke
Energy Welfare Plans as in effect immediately prior to the Distribution Date (collectively, the “Spectra Energy Welfare Plans”). 
  

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 (b) Terms of Participation in Spectra Energy Welfare Plans. Spectra Energy (acting directly or
through its Affiliates) shall cause all Spectra Energy Welfare Plans to (i) waive all limitations as to preexisting conditions, exclusions, and service conditions with respect to participation and coverage requirements applicable to Spectra
Energy Participants, other than limitations that were in effect with respect to Spectra Energy Participants as of the Distribution Date under the Duke Energy Welfare Plans, and (ii) waive any waiting period limitation or evidence of
insurability requirement that would otherwise be applicable to a Spectra Energy Participant following the Distribution Date to the extent such Spectra Energy Participant had satisfied any similar limitation under the analogous Duke Energy Welfare
Plan. Spectra Energy intends to provide that Spectra Energy Participants shall initially be eligible for participation in and benefits under Spectra Energy retiree welfare plans on the same basis under which they were eligible for participation in
and benefits under the Duke Energy retiree welfare plans immediately before the Distribution. 
 (c) Reimbursement Account Plan.
Effective as of the Distribution Date, Spectra Energy (acting directly or through its Affiliates) shall have established a health and dependent care reimbursement account plan (the “Spectra Energy Reimbursement Account Plan”) with
features that are comparable to those contained in the health and dependent care reimbursement account plan maintained by Duke Energy for the benefit of Spectra Energy Participants immediately prior to the Distribution Date (the “Duke Energy
Reimbursement Account Plan”). Duke Energy shall retain the Liability for administering under the Duke Energy Reimbursement Account Plan all reimbursement claims of Duke Energy Participants and Spectra Energy Participants with respect to
calendar year 2006, whether arising before, on, or after the Distribution Date. With respect to Spectra Energy Participants, Spectra Energy (acting directly or through its Affiliates) shall assume responsibility for administering under the Spectra
Energy Reimbursement Account Plan all reimbursement claims of Spectra Energy Participants with respect to calendar year 2007, whether arising before, on, or after the Distribution Date. No more than 45 days following the Distribution Date (or such
later time as mutually agreed by the Parties), Duke Energy shall cause to be transferred to Spectra Energy an amount in cash, cash-like securities or other cash equivalents equal to the sum of all contributions (if any) to the Duke Energy
Reimbursement Account Plan made with respect to calendar year 2007 by or on behalf of any Spectra Energy Participant prior to the Distribution Date. 
 (d) Continuation of Elections. As of the Distribution Date, Spectra Energy (acting directly or through its Affiliates) shall cause the Spectra Energy Welfare Plans to recognize and maintain all elections and
designations (including all coverage and contribution elections and beneficiary designations) made by Spectra Energy Participants under, or with respect to, the Duke Energy Welfare Plans and apply such elections and designations under the Spectra
Energy Welfare Plans for the remainder of the period or periods for which such elections or designations are by their original terms applicable, to the extent such election or designation is available under the corresponding Spectra Energy Welfare
Plan. 
 (e) COBRA and HIPAA. Effective as of the Distribution Date, Spectra Energy (acting directly or through its Affiliates) shall
assume, or shall have caused the Spectra Energy Welfare Plans to assume, responsibility for compliance with the health care continuation coverage requirements of COBRA with respect to Spectra Energy Participants who, as of the day prior to the

  

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Distribution Date, were covered under a Duke Energy Welfare Plan pursuant to COBRA. Duke Energy (acting directly or through its Affiliates) shall be
responsible for administering compliance with any certificate of creditable coverage requirements of HIPAA or Medicare applicable to the Duke Energy Welfare Plans with respect to Spectra Energy Participants. The Parties hereto agree that neither the
Distribution nor any transfers of employment that occur as of the Distribution Date shall constitute a COBRA qualifying event for purposes of COBRA; provided, that, in all events, Spectra Energy (acting directly or through its
Affiliates) shall assume, or shall have caused the Spectra Energy Welfare Plans to assume, responsibility for compliance with the health care continuation coverage requirements of COBRA with respect to those Duke Energy Employees whose employment is
transferred directly from the Duke Energy Group to the Spectra Energy Group as of the Distribution Date to the extent such individual was, as of the day prior to such transfer of employment, covered under a Duke Energy Welfare Plan. 
 (f) Liabilities. 
 (i) Insured
Benefits. With respect to employee welfare and fringe benefits that are provided through the purchase of insurance, Duke Energy shall cause the Duke Energy Welfare Plans to fully perform, pay and discharge all claims of Spectra Energy
Participants that are incurred prior to the Distribution Date and Spectra Energy shall cause the Spectra Energy Welfare Plans to fully perform, pay and discharge all claims of Spectra Energy Participants that are incurred on or after the
Distribution Date. 
 (ii) Self-Insured Benefits. With respect to employee welfare and fringe benefits that are provided on a
self-insured basis, (A) Duke Energy (acting directly or through its Affiliates) shall fully perform, pay and discharge, under the Duke Energy Welfare Plans, all claims of Spectra Energy Participants who are Spectra Energy Employees that are
incurred but not paid prior to the Distribution Date, and (B) Spectra Energy (acting directly or through its Affiliates) shall fully perform, pay and discharge, under the Spectra Energy Welfare Plans, from and after the Distribution Date, all
claims of Spectra Energy Participants who are Spectra Energy Employees that are incurred on or after the Distribution Date. Duke Energy shall submit a monthly written invoice to Spectra Energy detailing Spectra Energy’s portion of retiree
medical and dental claims incurred prior to the Distribution Date but paid by Blue Cross and Blue Shield of North Carolina and Fiserv Health (formerly Wausau Benefits, Inc.) after the Distribution Date, and Spectra Energy shall be liable for such
portion and pay such invoices. Spectra Energy shall have the right, at its own expense, to audit, or to cause an inspection body selected by Spectra Energy and composed of members with appropriate professional qualifications to audit, such invoices
in a commercially reasonable manner during normal Duke Energy business hours. 
 (iii) Incurred Claim Definition. For purposes of
this Section 5.1(f), a claim or Liability is deemed to be incurred (A) with respect to medical, dental, vision and/or prescription drug benefits, upon the rendering of health services giving rise to such claim or Liability; (B) with
respect to life insurance, accidental death and dismemberment and business travel accident insurance, upon the occurrence of the event giving rise to such claim or Liability; (C) with respect to disability benefits, upon the date of an
individual’s disability, as determined by the disability benefit insurance carrier or claim administrator, giving rise to such claim or Liability; and (D) with respect to a period of continuous hospitalization, upon the date of admission
to the hospital. 
  

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 (iv) Treatment of Other Liabilities, Recoveries and Adjustments. For purposes of applying the
claim Liability provisions of clause (ii) above as it relates to retiree medical and dental claims: (A) recoveries made by the Duke Energy Welfare Plans or Duke Energy with respect to claims incurred prior to the Distribution Date,
including subrogation/reimbursement recoveries, claim adjustment recoveries and demutualization proceeds, shall be taken into account as positive claim adjustments; and (B) other non-routine claim Liabilities paid by the Duke Energy Welfare
Plans or Duke Energy with respect to claims incurred prior to the Distribution Date, including Medicare Secondary Payer Liability, shall be taken into account as claim Liabilities. 
 (v) Claim Experience. Notwithstanding the foregoing, the Parties (acting directly or through their Affiliates) shall take any action necessary to
ensure that any claims experience under the Duke Energy Welfare Plans attributable to Spectra Energy Participants shall be allocated to the Spectra Energy Welfare Plans. 
 Section 5.2 Disposition of VEBA Assets. 
 (a) Establishment of Spectra Energy VEBA.
Effective not later than the Distribution Date (or such later time as mutually agreed by the Parties), Spectra Energy shall adopt the Spectra Energy VEBA in a form that is substantially comparable to the Duke Energy VEBA as in effect immediately
before the Distribution Date and shall cause the Spectra Energy VEBA to qualify under Section 501(c)(9) of the Code. 
 (b)
Determination of VEBA Assets. As soon as reasonably practicable after the Distribution Date, Duke Energy shall cause the Duke Energy Actuary to determine for the Duke Energy VEBA the total benefit Liabilities as of the Distribution Date for
all participants in plans covered by the Duke Energy VEBA using the actuarial assumptions set forth in Schedule E attached hereto. 
 (c)
VEBA Asset Allocations and Transfers. The portion of the Duke Energy VEBA assets that shall be allocated to the Spectra Energy VEBA shall be determined as provided in Schedule E attached hereto. As soon as reasonably practicable after such
determination, the amount of the Duke Energy VEBA assets allocated to the Spectra Energy VEBA in accordance with the preceding sentence shall be transferred (in cash or in-kind, as determined by Duke Energy in its discretion) to the Spectra Energy
VEBA. 
 Section 5.3 Disposition of Retired Lives Reserve. 
 (a) Establishment of Spectra Energy RLR. Effective not later than the Distribution Date (or such later time as mutually agreed by the Parties),
Spectra Energy shall establish an insurance policy in such form that permits it to accept a transfer of assets from the Duke Energy RLR. 
  

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 (b) Determination of Duke Energy RLR Liabilities. As soon as reasonably practicable after the
Distribution Date, Duke Energy shall cause the Duke Energy Actuary to determine for the Duke Energy RLR the total benefit Liabilities as of the Distribution Date that are subject to funding under the Duke Energy RLR using the actuarial assumptions
set forth in Schedule E attached hereto. 
 (c) Transfer of Duke Energy RLR Assets. The portion of the Duke Energy RLR that shall be
allocated to Spectra Energy shall be determined as provided in Schedule E attached hereto. As soon as reasonably practicable after such determination, Duke Energy shall cause the insurance company holding the Duke Energy RLR to transfer from the
Duke Energy RLR to the insurance policy established pursuant to subsection (a) above, an amount in cash or in kind (as determined by Duke Energy in its discretion) equal to the portion of the Duke Energy RLR allocated to Spectra Energy in
accordance with the preceding sentence. 
 Section 5.4 Time-Off Benefits. Spectra Energy shall credit each Spectra Energy
Participant with the amount of accrued but unused vacation time, sick time and other time-off benefits as such Spectra Energy Participant had with the Duke Energy Group as of the Distribution Date. Notwithstanding the above, Spectra Energy shall not
be required to credit any Spectra Energy Participant with any accrual to the extent that a benefit attributable to such accrual is provided by the Duke Energy Group. 
 ARTICLE VI 
 NONQUALIFIED RETIREMENT PLANS 
 Section 6.1 Spectra Energy Supplemental Retirement Plan. 
 (a) Spectra Energy Retained Nonqualified Plans. Following the Distribution Date, Spectra Energy (acting directly or through its Affiliates) shall retain, and Duke Energy shall have no obligation whatsoever with
regard to, all obligations and Liabilities under, or with respect to, the supplemental retirement plans that are listed on Schedule H attached hereto (collectively, the “Spectra Energy Retained SRP”). 
 (b) Establishment of Spectra Energy Nonqualified Plans. Effective as of the Distribution Date, Spectra Energy shall, or shall cause one of its
Affiliates to, establish a non-qualified deferred compensation plan or plans to benefit Spectra Energy Participants or directors of Spectra Energy who have accrued, or were eligible to accrue, benefits under the Duke Energy SRP immediately prior to
the Distribution Date, the terms of which are substantially comparable, in the aggregate, to the terms of the Duke Energy SRP as in effect immediately prior to the Distribution Date (the “Spectra Energy Nonqualified Plans”).
Effective as of the Distribution Date, Spectra Energy hereby agrees to cause the Spectra Energy Nonqualified Plans to assume responsibility for all Liabilities and fully perform, pay and discharge all obligations, when such obligations become due,
of the Duke Energy SRP with respect to all Spectra Energy Participants therein and Spectra Energy directors covered thereby. Spectra Energy (acting directly or through its Affiliates) shall be responsible for any and all Liabilities (including
Liability for funding) and other obligations with respect to the Spectra Energy Nonqualified Plans. 
  

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 (c) Continuation of Elections. As of the Distribution Date, Spectra Energy (acting directly or
through an Affiliate) shall cause the Spectra Energy Nonqualified Plans to recognize and maintain all elections (including deferral, distribution and investment elections) and beneficiary designations with respect to Spectra Energy Participants and
Spectra Energy directors under the Duke Energy SRP to the extent such elections or designations are available under the Spectra Energy Nonqualified Plans until a new election that by its terms supersedes such original election is made by the Spectra
Energy Participant or Spectra Energy director in accordance with applicable Law and the terms and conditions of the Spectra Energy Nonqualified Plans. 
 Section 6.2 Transfer Of Assets Attributable To Duke Energy Nonqualified Plans. 
 (a)
Establishment of Spectra Energy Rabbi Trust. Effective not later than the Distribution Date (or such later time as mutually agreed by the Parties), Spectra Energy shall adopt (or, to the extent applicable, assume in its entirety) the Spectra
Energy Rabbi Trust in a form that is substantially comparable to the Duke Energy Rabbi Trust as in effect immediately before the Distribution Date. 
 (b) Determination of Rabbi Trust Liabilities. As soon as reasonably practicable after the Distribution Date, Duke Energy shall cause the Duke Energy Actuary to determine the total benefit Liabilities as of the Distribution Date under
the Financed Nonqualified Plans using the actuarial assumptions set forth in Schedule E attached hereto. 
 (c) Transfer of Rabbi Trust
Assets. The portion of the Duke Energy Rabbi Trust that shall be allocated to Spectra Energy shall be equal to, as of the Distribution Date and as determined under subsection (b) above, the proportion that the benefit Liabilities in respect
of Spectra Energy Participants under the Financed Nonqualified Plans bears to the total benefit Liabilities of all of the Duke Energy Participants and Spectra Energy Participants under the Financed Nonqualified Plans. As soon as reasonably
practicable after such determination, Duke Energy shall transfer, or shall cause the trustee of the Duke Energy Rabbi Trust to transfer from the Duke Energy Rabbi Trust, to the Spectra Energy Rabbi Trust an amount in cash or in kind (any such assets
to be determined by Duke Energy in its discretion) equal to the portion of the Duke Energy Rabbi Trust allocated to Spectra Energy in accordance with the preceding sentence. 
 ARTICLE VII 
 LONG-TERM INCENTIVE AWARDS 
 Section 7.1 Treatment of Outstanding Duke Energy Options. 
 (a) Each Duke Energy Option that is outstanding immediately prior to the Distribution Date shall, as of the Distribution Date (or, in the case of Duke Energy Options held by individuals who are subject to income
taxation in Canada, as of immediately before the Distribution Date), be converted into a Spectra Energy Option and an adjusted Duke Energy Option (each a “Post-Distribution Duke Energy Option”) in accordance with the succeeding
paragraphs of this Section 7.1; provided, that, if after such conversion in respect of an individual 

  

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who is subject to income taxation in Canada, the Board of Directors of Duke Energy shall determine that the Distribution shall not occur, each Spectra Energy
Option and Post-Distribution Duke Energy Option held by such individual on account of such conversion shall thereupon collectively be converted back into a Duke Energy Option on the same terms and conditions as were applicable immediately before
such conversion into a Spectra Energy Option and Post-Distribution Duke Energy Option. 
 (b) The number of shares subject to the Spectra
Energy Option shall be equal to the number of shares of Spectra Energy Common Stock to which the option holder would be entitled in the Distribution had the shares subject to the Duke Energy Option represented outstanding shares of Duke Energy
Common Stock as of the Record Date, the resulting number of shares subject to the Spectra Energy Option being rounded down to the nearest whole share. The per share exercise price of the Post-Distribution Duke Energy Option shall be equal to the
product of (1) the per share exercise price of the Duke Energy Option immediately prior to the Distribution Date (the “Pre-Distribution Duke Energy Option Price”) multiplied by (2) a fraction, the numerator of which shall
be the Post-Distribution Duke Energy Stock Price and the denominator of which shall be the sum of (i) the Post-Distribution Duke Energy Stock Price and (ii) the quotient determined by dividing the Post-Distribution Spectra Energy Stock
Price by the Spectra Energy Ratio (as defined below), which product shall be rounded up to the nearest whole cent. The per share exercise price of the Spectra Energy Option shall be equal to the product of (1) the Pre-Distribution Duke Energy
Option Price multiplied by (2) a fraction, the numerator of which shall be the Post-Distribution Spectra Energy Stock Price and the denominator of which shall be the sum of (i) the Post-Distribution Duke Energy Stock Price and
(ii) the quotient determined by dividing the Post-Distribution Spectra Energy Stock Price by the Spectra Energy Ratio, which product shall be rounded up to the nearest whole cent. For purposes of this paragraph (b), “Spectra Energy
Ratio” shall mean the amount determined by dividing (x) the number one (1) by (y) the number of shares of Spectra Energy Common Stock distributed in respect of each share of Duke Energy Common Stock in the Distribution. For
the avoidance of doubt, the methodology described in the preceding provisions of this subsection (b) for determining the exercise price under the Post-Distribution Duke Energy Option and Spectra Energy Option shall likewise apply in determining
the base price of any stock appreciation right issued in tandem with a Duke Energy Option that is outstanding immediately prior to the Distribution Date. 
 (c) Prior to the Distribution Date, Duke Energy shall amend the applicable Duke Energy Stock Plans as necessary, effective as of the Distribution Date, to provide that for purposes of the Post-Distribution Duke Energy
Options (including in determining exercisability and the post-termination exercise period), a Spectra Energy Employee’s continued service with the Spectra Energy Group following the Distribution Date shall be deemed continued service with Duke
Energy. Spectra Energy shall issue each Spectra Energy Option under the Spectra Energy Stock Plan, which shall provide that, except as otherwise provided herein, the terms and conditions applicable to the Spectra Energy Options shall be
substantially similar to the terms and conditions applicable to the corresponding Duke Energy Option, including the terms and conditions relating to vesting and the post-termination exercise period (as set forth in the applicable plan, award
agreement or in the option holder’s then applicable employment agreement with Duke Energy or its Affiliates, which terms shall remain in effect even after the expiration or termination of such employment agreement) and including a provision to
the effect that, for purposes of the Spectra Energy Options, continued service with the Duke Energy Group from and after the Distribution Date shall be deemed to constitute service with Spectra Energy. 
  

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 (d) The Spectra Energy Options and the Post-Distribution Duke Energy Options shall remain subject to the
terms and conditions of the underlying Duke Energy Option as in effect immediately prior to the Distribution Date, including any Detrimental Conduct Provisions and terms relating to post-termination exercise periods provided for in any option
holder’s employment agreement. 
 (e) Upon the exercise of a Spectra Energy Option, regardless of the holder thereof, the exercise price
shall be paid to (or otherwise satisfied to the satisfaction of) Spectra Energy in accordance with the terms of the Spectra Energy Option, and Spectra Energy shall be solely responsible for the issuance of Spectra Energy Common Stock, for ensuring
the withholding of all applicable tax on behalf of the employing entity of such holder, and for ensuring the remittance of such withholding taxes to the employing entity of such holder. Upon the exercise of a Duke Energy Option, regardless of the
holder thereof, the exercise price shall be paid to (or otherwise satisfied to the satisfaction of Duke Energy) in accordance with the terms of the Duke Energy Option, and Duke Energy shall be solely responsible for the issuance of Duke Energy
Common Stock, for ensuring the withholding of all applicable tax on behalf of the employing entity of such holder and for ensuring the remittance of such withholding taxes to the employing entity of such holder. 
 Section 7.2 Treatment of Outstanding Duke Energy Restricted Stock. 
 (a) Each holder as of the Record Date of Duke Energy Restricted Shares that remain outstanding immediately prior to the Distribution Date shall
receive, upon the Distribution being made, such number of Spectra Energy Restricted Shares as equals the number of shares of Spectra Energy Common Stock to which all other holders of shares of Duke Energy Common Stock shall be entitled to
receive upon the Distribution being made. The Duke Energy Restricted Shares outstanding following the Distribution having been made are hereinafter referred to as “adjusted Duke Energy Restricted Shares.” The Spectra Energy Restricted
Shares and the adjusted Duke Energy Restricted Shares shall be subject to the succeeding paragraphs of this Section 7.2. 
 (b) All
Spectra Energy Restricted Shares and adjusted Duke Energy Restricted Shares shall become vested upon the date the Duke Energy Restricted Shares would have otherwise vested in accordance with the existing vesting schedule. 
 (c) Prior to the Distribution Date, Duke Energy shall amend the applicable Duke Energy Stock Plans as necessary, effective as of the Distribution Date,
to provide that for purposes of continued vesting of the adjusted Duke Energy Restricted Shares, a Spectra Energy Employee’s continued service with the Spectra Energy Group following the Distribution Date shall be deemed continued service with
Duke Energy. The issuance of each Spectra Energy Restricted Share shall be subject to the terms of the Spectra Energy Stock Plan, which shall provide that, except as otherwise provided herein, the terms and conditions applicable to the Spectra
Energy Restricted Shares shall be substantially similar to the terms and conditions applicable to the corresponding Duke Energy Restricted Shares (as set forth in the applicable plan, award 

  

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agreement or in the holder’s then applicable employment agreement with Duke Energy or its Affiliates, which terms shall remain in effect even after the
expiration or termination of such employment agreement), including any Detrimental Conduct Provisions, and including a provision to the effect that, for purposes of the Spectra Energy Restricted Shares, continued service with the Duke Energy Group
from and after the Distribution Date shall be deemed to constitute service with Spectra Energy. 
 (d) Upon the vesting of the Spectra Energy
Restricted Shares, Spectra Energy shall be solely responsible for the settlement of all Spectra Energy Restricted Shares, regardless of the holder thereof, and for ensuring the satisfaction of all applicable tax withholding requirements on behalf of
the employing entity of such holder and for ensuring the remittance of such withholding taxes to the employing entity of such holder. Upon the vesting of the Duke Energy Restricted Shares, Duke Energy shall be solely responsible for the settlement
of all Duke Energy Restricted Shares, regardless of the holder thereof, and for ensuring the satisfaction of all applicable tax withholding requirements on behalf of the employing entity of such holder and for ensuring the remittance of such
withholding taxes to the employing entity of such holder. 
 Section 7.3 Treatment of Outstanding Duke Energy Phantom Stock.

 (a) Each Duke Energy Phantom Stock Unit that is outstanding immediately prior to the Distribution Date shall be converted, as of the
Distribution Date, into a Spectra Energy Phantom Stock Unit and an adjusted Duke Energy Phantom Stock Unit (including a ratable portion of any accumulated dividend equivalents) in accordance with the succeeding paragraphs of this Section 7.3.

 (b) The number of Spectra Energy Phantom Stock Units shall be equal to the number of shares of Spectra Energy Common Stock to which the
holder of Duke Energy Phantom Stock Units would be entitled in the Distribution had the Duke Energy Phantom Stock Units represented actual shares of Duke Energy Common Stock as of the Record Date, the resulting number of Spectra Energy Phantom Stock
Units being rounded down to the nearest whole unit. All Spectra Energy Phantom Stock Units and adjusted Duke Energy Phantom Stock Units shall become vested upon the date the Duke Energy Phantom Stock Units would have otherwise vested in accordance
with the existing vesting schedule. 
 (c) Prior to the Distribution Date, Duke Energy shall amend the applicable Duke Energy Stock Plans as
necessary, effective as of the Distribution Date, to provide that for purposes of continued vesting of the adjusted Duke Energy Phantom Stock Units, a Spectra Energy Employee’s continued service with the Spectra Energy Group following the
Distribution Date shall be deemed continued service with Duke Energy. Spectra Energy shall issue each Spectra Energy Phantom Stock Unit under the Spectra Energy Stock Plan, which shall provide that, except as otherwise provided herein, the terms and
conditions applicable to the Spectra Energy Phantom Stock Units shall be substantially similar to the terms and conditions applicable to the corresponding Duke Energy Phantom Stock Unit (as set forth in the applicable plan, award agreement or in the
holder’s then applicable employment agreement with Duke Energy or its Affiliates, which terms shall remain in effect even after the expiration or termination of such employment agreement), including any Detrimental Conduct Provisions, and
including a 

  

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provision to the effect that, for purposes of the Spectra Energy Phantom Stock Units, continued service with the Duke Energy Group from and after the
Distribution Date shall be deemed to constitute service with Spectra Energy. 
 (d) Upon the vesting of the Spectra Energy Phantom Stock
Units, Spectra Energy shall be solely responsible for the settlement of all Spectra Energy Phantom Stock Units (including any attributable dividend equivalents), regardless of the holder thereof, and for ensuring the satisfaction of all applicable
tax withholding requirements on behalf of the employing entity of such holder and for ensuring the remittance of such withholding taxes to the employing entity of such holder. Upon the vesting of the Duke Energy Phantom Stock Units, Duke Energy
shall be solely responsible for the settlement of all Duke Energy Phantom Stock Units (including any attributable dividend equivalents), regardless of the holder thereof, and for ensuring the satisfaction of all applicable tax withholding
requirements on behalf of the employing entity of such holder and for ensuring the remittance of such withholding taxes to the employing entity of such holder. Notwithstanding the foregoing provisions of this subsection (d), to the extent a Duke
Energy Phantom Stock Unit or Spectra Energy Phantom Stock Unit is deferred under a deferral plan (including the Duke Energy SRP or Spectra Energy Nonqualified Plan), payment in respect of such Duke Energy Phantom Stock Unit or Spectra Energy Phantom
Stock Unit shall be made pursuant to the terms of such deferral plan. 
 Section 7.4 Treatment of Outstanding Duke Energy Performance
Shares. 
 (a) Each Duke Energy Performance Share that is outstanding immediately prior to the Distribution Date shall be converted, as of
the Distribution Date, into a Spectra Energy Performance Share and an adjusted Duke Energy Performance Share (including a ratable portion of any accumulated dividend equivalents) in accordance with the succeeding paragraphs of this Section 7.4.

 (b) The number of Spectra Energy Performance Shares shall be equal to the number of shares of Spectra Energy Common Stock to which the
holder of Duke Energy Performance Shares would be entitled in the Distribution had the Duke Energy Performance Shares represented actual shares of Duke Energy Common Stock as of the Record Date, the resulting number of Spectra Energy Performance
Shares being rounded down to the nearest whole unit. For purposes of determining the extent to which Spectra Energy Performance Shares and adjusted Duke Energy Performance Shares shall become vested, (i) to the extent necessary Duke Energy
shall recommend such actions to be taken such that, for any portion of the applicable performance period that occurs after the Distribution Date, measurement of total shareholder return shall be based upon two equity components, weighted 50% each,
consisting respectively of Duke Energy Common Stock and Spectra Energy Common Stock, using the Post-Distribution Duke Energy Stock Price and the Post-Distribution Spectra Energy Stock Price, respectively, as the basis of measurement, and
(ii) Duke Energy (or, as applicable, the Board of Directors of Duke Energy or a committee thereof) shall establish the performance metrics under any Duke Energy Performance Share and Spectra Energy Performance Share held by a Duke Energy
Employee in respect of which the performance metrics are not yet established as of the Distribution Date, and (iii) Spectra Energy (or, as applicable, the Board of Directors of Spectra Energy or a committee thereof) shall establish the
performance metrics under any Duke Energy Performance Share and Spectra Energy Performance Share held by a Spectra Energy Employee in respect of which the performance metrics are not yet established as of the Distribution Date. 
  

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 (c) Prior to the Distribution Date, Duke Energy shall amend the applicable Duke Energy Stock Plans as
necessary, effective as of the Distribution Date, to provide that for purposes of continued vesting of the adjusted Duke Energy Performance Shares, a Spectra Energy Employee’s continued service with the Spectra Energy Group following the
Distribution Date shall be deemed continued service with Duke Energy. Spectra Energy shall issue each Spectra Energy Performance Share under the Spectra Energy Stock Plan, which shall provide that, except as otherwise provided herein, the terms and
conditions applicable to the Spectra Energy Performance Shares shall be substantially similar to the terms and conditions applicable to the corresponding Duke Energy Performance Share (as set forth in the applicable plan, award agreement or in the
holder’s then applicable employment agreement with Duke Energy or its Affiliates, which terms shall remain in effect even after the expiration or termination of such employment agreement), including any Detrimental Conduct Provisions, and
including a provision to the effect that, for purposes of the Spectra Energy Performance Shares, continued service with the Duke Energy Group from and after the Distribution Date shall be deemed to constitute service with Spectra Energy. 

(d) Upon the vesting of the Spectra Energy Performance Shares, Spectra Energy shall be solely responsible for the settlement of all Spectra Energy
Performance Shares (including any attributable dividend equivalents), regardless of the holder thereof, and for ensuring the satisfaction of all applicable tax withholding requirements on behalf of the employing entity of such holder and for
ensuring the remittance of such withholding taxes to the employing entity of such holder. Upon the vesting of the Duke Energy Performance Shares, Duke Energy shall be solely responsible for the settlement of all Duke Energy Performance Shares
(including any attributable dividend equivalents), regardless of the holder thereof, and for ensuring the satisfaction of all applicable tax withholding requirements on behalf of the employing entity of such holder and for ensuring the remittance of
such withholding taxes to the employing entity of such holder. Notwithstanding the foregoing provisions of this subsection (d), to the extent a Duke Energy Performance Share or Spectra Energy Performance Share is deferred under a deferral plan
(including the Duke Energy SRP or Spectra Energy Nonqualified Plan), payment in respect of such Duke Energy Performance Share or Spectra Energy Performance Share shall be made pursuant to the terms of such deferral plan. 
 Section 7.5 Cooperation. Each of the Parties shall establish an appropriate administration system in order to handle in an orderly manner
exercises of Duke Energy Options and Spectra Energy Options and the settlement of Duke Energy Restricted Shares, Duke Energy Phantom Stock Units, Duke Energy Performance Shares, Spectra Energy Restricted Shares, Spectra Energy Phantom Stock Units
and Spectra Energy Performance Shares. Each of the Parties will work together to unify and consolidate all indicative data and payroll and employment information on regular timetables and make certain that each applicable entity’s data and
records in respect of such awards are correct and updated on a timely basis. The foregoing shall include employment status and information required for tax withholding/remittance, compliance with trading windows and compliance with the requirements
of the Exchange Act and other applicable Laws. 
  

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 Section 7.6 SEC Registration. The Parties mutually agree to use commercially reasonable
efforts to maintain effective registration statements with the SEC with respect to the long-term incentive awards described in this Article VII, to the extent any such registration statement is required by applicable Law. 
 Section 7.7 Savings Clause. The Parties hereby acknowledge that the provisions of this Article VII are intended to achieve certain tax, legal
and accounting objectives and, in the event such objectives are not achieved, the Parties agree to negotiate in good faith regarding such other actions that may be necessary or appropriate to achieve such objectives. 
 ARTICLE VIII 
 ADDITIONAL COMPENSATION
MATTERS; SEVERANCE 
 Section 8.1 Annual Incentive Awards. 
 (a) Spectra Energy Assumption of Annual Incentive Liability. Effective as of the Distribution Date, Spectra Energy shall assume or retain, as
applicable, responsibility for all Liabilities and fully perform, pay and discharge all obligations, when such obligations become due, relating to any annual incentive awards that any Spectra Energy Participant is eligible to receive with respect to
calendar year 2006 and, effective as of the Effective Time, Duke Energy shall have no obligation with respect to any such annual incentive award. 
 (b) Duke Energy Assumption of Annual Incentive Liability. Effective as of the Distribution Date, Duke Energy shall assume or retain, as applicable, responsibility for all Liabilities and fully perform, pay and discharge all
obligations relating to any annual incentive awards that any Duke Energy Participant is eligible to receive with respect to calendar year 2006 and, effective as of the Distribution Date, Spectra Energy shall have no obligation with respect thereto.

 (c) Establishment of Spectra Energy Annual Incentive Plan. Effective as of the Distribution Date, Spectra Energy shall have adopted
an annual incentive plan which shall permit the issuance of annual incentive awards on terms and conditions substantially comparable to those under the Duke Energy Executive Short-Term Incentive Plan (provided that the payment amounts and individual
performance criteria shall be established in the discretion of the Spectra Energy Board of Directors or the Compensation Committee thereof). 
 (d) Special 2006 Bonus Provision. Duke Energy and Spectra Energy shall cooperate in amending to the extent permitted the terms of annual incentive awards otherwise payable with respect to 2006 to certain Duke Energy Participants or
Spectra Energy Participants to provide that such annual incentive award shall not be payable unless and until such Duke Energy Participant or Spectra Energy Participant completes a predetermined period of service. 
  

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 Section 8.2 Individual Arrangements. 
 (a) Duke Energy Individual Arrangements. Duke Energy acknowledges and agrees that, except as otherwise provided herein, it shall have full
responsibility with respect to any Liabilities and the payment or performance of any obligations arising out of or relating to any employment, consulting, non-competition, retention or other compensatory arrangement (including any EPS Units
Agreement or Severance and Retention Compensation Agreement) previously provided by any member of the Duke Energy Group or Spectra Energy Group to any Duke Energy Participant, including life insurance policies not held in any trust and covering any
Duke Energy Participant. 
 (b) Spectra Energy Individual Arrangements. Spectra Energy acknowledges and agrees that, except as
otherwise provided herein, it shall have full responsibility with respect to any Liabilities and the payment or performance of any obligations arising out of or relating to any employment, consulting, non-competition, retention or other compensatory
arrangement (including any EPS Units Agreement or Severance and Retention Compensation Agreement) previously provided by any member of the Duke Energy Group or Spectra Energy Group to any Spectra Energy Participant, including life insurance policies
not held in any trust and covering any Spectra Energy Participant. 
 Section 8.3 Severance Plans. 
 (a) Establishment of Spectra Energy Severance Plans. Effective as of the Distribution Date, Spectra Energy shall take all steps necessary
to establish for Spectra Energy employees of its United States subsidiaries severance plans which, for the one-year period following the Distribution Date, provide severance benefits comparable to those provided under the Duke Energy Reorganization
Severance Benefits Plan (PN: 564) (such Spectra Energy severance plans referred to herein collectively as the “Spectra Energy Severance Plans”). 
 (b) Assumption of Severance Liabilities. Effective as of the Effective Time, Spectra Energy shall assume or retain, as applicable, responsibility for all Liabilities and fully perform, pay and
discharge all obligations, when such obligations become due, relating to any severance benefit to which a Spectra Energy Participant is entitled under a Duke Energy Severance Plan as of the Distribution Date. Likewise, Duke Energy shall assume
or retain, as applicable, responsibility for all Liabilities and fully perform, pay and discharge all obligations, when such obligations become due, relating to any severance benefit to which a Duke Energy Participant is entitled under a Duke Energy
Severance Plan as of the Distribution Date. 
 (c) Effect of the Separation on Severance. Duke Energy and Spectra Energy
acknowledge and agree that the transactions contemplated by the Separation Agreement will not constitute a termination of employment of any Spectra Energy Participant for purposes of any policy, plan, program or agreement of Duke Energy or Spectra
Energy or any member of the Duke Energy Group or Spectra Energy Group that provides for the payment of severance, separation pay, salary continuation or similar benefits in the event of a termination of employment. 
  

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 Section 8.4 Workers’ Compensation Liabilities. 
 (a) Pre-Distribution Date Claims. Except as set forth below, all workers’ compensation Liabilities relating to, arising out of, or resulting
from any claim by a Spectra Energy Employee or Former Spectra Energy Employee that results from an accident, incident or event occurring, or from an occupational disease which becomes manifest, before the Distribution Date shall be retained by
Spectra Energy. Notwithstanding the foregoing, Spectra Energy shall not assume or retain any workers’ compensation Liability relating to, arising out of, or resulting from any claim by a Spectra Energy Employee that results from an accident,
incident or event occurring, or from an occupational disease which becomes manifest, while such Spectra Energy Employee was employed by any member of the Duke Energy Group (such a claim, a “Duke Energy Retained Claim”). All
workers’ compensation Liabilities relating to, arising out of, or resulting from (i) any Duke Energy Retained Claim or (ii) any claim by a Duke Energy Employee or Former Duke Energy Employee that results from an accident, incident, or
event occurring, or from an occupational disease which becomes manifest before the Distribution Date shall be retained by Duke Energy. 
 (b)
Post-Distribution Date Claims. All workers’ compensation Liabilities relating to, arising out of, or resulting from any claim by a Spectra Energy Employee or Former Spectra Energy Employee that results from an accident, incident or event
occurring, or from an occupational disease which becomes manifest, on or after the Distribution Date shall be retained by Spectra Energy. All workers’ compensation Liabilities relating to, arising out of, or resulting from any claim by a Duke
Energy Employee or Former Duke Energy Employee that results from an accident, incident or event occurring, or from an occupational disease which becomes manifest, on or after the Distribution Date shall be retained by Duke Energy. 
 (c) General. For purposes of this Section 8.4, a compensable injury shall be deemed to be sustained upon the occurrence of the event giving
rise to eligibility for workers’ compensation benefits or an occupation disease becomes manifest, as the case may be. Duke Energy and Spectra Energy shall cooperate in good faith with respect to the notification to appropriate governmental
agencies of the Distribution and the issuance of new, or the transfer of existing, workers’ compensation insurance policies and claims handling contracts. 
 Section 8.5 Sections 162(m)/409A. Notwithstanding anything in this Agreement to the contrary (including the treatment of supplemental and deferred compensation plans, outstanding long-term incentive awards
and annual incentive awards as described herein), the Parties agree to negotiate in good faith regarding the need for any treatment different from that otherwise provided herein to ensure that (i) a federal income Tax deduction for the payment
of such supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation is not limited by reason of Section 162(m) of the Code, and (ii) the treatment of such supplemental or deferred
compensation or long-term incentive award, annual incentive award or other compensation does not cause the imposition of a tax under Section 409A of the Code. 
 Section 8.6 Director Programs. 
 (a) Certain Director Plans. Effective as of the
Distribution Date, Spectra Energy shall, or shall cause one of its Affiliates to, establish a plan with terms and conditions substantially comparable to the Duke Energy Directors Charitable Giving Program. Effective as of the Distribution Date,
Spectra Energy hereby agrees to cause such plan to assume responsibility 

  

 30 

 
for all Liabilities and fully perform, pay and discharge all obligations, when such obligations come due, of the Duke Energy Directors Charitable Giving
Program with respect to all individuals who are members of the Spectra Energy Board of Directors as of the Effective Time or are a Former Spectra Energy Employee or director and, effective as of the Distribution Date, Duke Energy shall have no
obligation in respect of any such individual under such Spectra Energy plan. Any Assets related to the Spectra Energy Participants in the Duke Energy Directors Charitable Giving Program shall be transferred by Duke Energy to Spectra Energy as soon
as practicable following the Distribution Date. 
 (b) Certain Director Fees. Except as provided in subsection (a), above, Duke Energy
shall retain responsibility for the payment of any fees payable in respect of service on the Duke Energy Board of Directors that are payable but not yet paid as of the Distribution Date, and Spectra Energy shall have no responsibility for any such
payments (to an individual who is a member of the Spectra Energy Board of Directors as of the Effective Time or otherwise). 
 ARTICLE IX

 SPECIAL CINERGY AND WESTCOAST PROVISIONS 
 Section 9.1. Cinergy Corp. Employees. Except as otherwise expressly provided in this Agreement, all Liabilities with respect to the employment, service, termination of employment or termination of service
of all employees and former employees of Cinergy Corp. and its Subsidiaries, to the extent previously assumed by Duke Energy or its Affiliates or otherwise arising in connection with or as a result of employment with or the performance of services
for Duke Energy or its Affiliates, shall be treated as Power Liabilities for purposes of the Separation Agreement, including those Liabilities set forth in Schedule J attached hereto. 
 Section 9.2 Westcoast Energy, Inc. Employees. Except as otherwise expressly provided in this Agreement, all Liabilities with respect to the
employment, service, termination of employment or termination of service of all employees or former employees of Westcoast Energy Inc. or its Subsidiaries shall be treated as Gas Liabilities for purposes of the Separation Agreement, including those
Liabilities set forth in Schedule K attached hereto. 
 ARTICLE X 
 INDEMNIFICATION 
 Section 10.1 General Indemnification. Any claim for
indemnification under this Agreement shall be governed by, and be subject to, the provisions of Article VII of the Separation Agreement, which provisions are hereby incorporated by reference into this Agreement and any references to
“Agreement” in such Article VII as incorporated herein shall be deemed to be references to this Agreement. 
  

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 ARTICLE XI 
 GENERAL AND ADMINISTRATIVE 
 Section 11.1 Sharing Of Information. Duke Energy and Spectra Energy
(acting directly or through their respective Affiliates) shall provide to the other and their respective agents and vendors all Information as the other may reasonably request to enable the requesting Party to administer efficiently and accurately
each of its Benefit Plans and to determine the scope of, as well as fulfill, its obligations under this Agreement. Such information shall, to the extent reasonably practicable, be provided in the format and at the times and places requested, but in
no event shall the Party providing such information be obligated to incur any out-of-pocket expenses not reimbursed by the Party making such request or make such information available outside of its normal business hours and premises. Any
information shared or exchanged pursuant to this Agreement shall be subject to the confidentiality requirements set forth in the Separation Agreement. The Parties also hereby agree to enter into any business associate agreements that may be required
for the sharing of any Information pursuant to this Agreement to comply with the requirements of HIPAA. 
 Section 11.2 Reasonable
Efforts/Cooperation. Each of the Parties hereto will use its commercially reasonable efforts to promptly take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws and
regulations to consummate the transactions contemplated by this Agreement, including adopting plans or plan amendments. Each of the Parties hereto shall cooperate fully on any issue relating to the transactions contemplated by this Agreement for
which the other Party seeks a determination letter or private letter ruling from the IRS, an advisory opinion from the DOL or any other filing, consent or approval with respect to or by a Governmental Entity 
 Section 11.3 Employer Rights. Nothing in this Agreement shall prohibit Spectra Energy or any Spectra Energy Affiliate from amending,
modifying or terminating any Spectra Energy Benefit Plan at any time within its sole discretion. In addition, nothing in this Agreement shall prohibit Duke Energy or any Duke Energy Affiliate from amending, modifying or terminating any Duke Energy
Benefit Plan at any time within its sole discretion. 
 Section 11.4 Effect on Employment. Except as expressly provided in this
Agreement, the occurrence of the Distribution alone shall not cause any employee to be deemed to have incurred a termination of employment which entitles such individual to the commencement of benefits under any of the Duke Energy Benefit Plans.
Furthermore, nothing in this Agreement is intended to confer upon any employee or former employee of Duke Energy, Spectra Energy or either of their respective Affiliates any right to continued employment, or any recall or similar rights to an
individual on layoff or any type of approved leave. 
 Section 11.5 Consent Of Third Parties. If any provision of this Agreement
is dependent on the Consent of any third party and such consent is withheld, the Parties hereto shall use their reasonable best efforts to implement the applicable provisions of this Agreement to the fullest extent practicable. If any provision of
this Agreement cannot be implemented due to the failure of such third party to consent, the Parties hereto shall negotiate in good faith to implement the provision in a mutually satisfactory manner. 
  

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 Section 11.6 Access To Employees. Following the Distribution Date, Duke Energy and Spectra
Energy shall, or shall cause each of their respective Affiliates to, make available to each other those of their employees who may reasonably be needed in order to defend or prosecute any legal or administrative action (other than a legal action
between Duke Energy and Spectra Energy) to which any employee, director or Benefit Plan of the Duke Energy Group or Spectra Energy Group is a party and which relates to their respective Benefit Plans prior to the Distribution Date. The Party to whom
an employee is made available in accordance with this Section 11.6 shall pay or reimburse the other Party for all reasonable expenses which may be incurred by such employee in connection therewith, including all reasonable travel, lodging, and
meal expenses, but excluding any amount for such employee’s time spent in connection herewith. 
 Section 11.7 Beneficiary
Designation/Release Of Information/Right To Reimbursement. To the extent permitted by applicable Law and except as otherwise provided for in this Agreement, all beneficiary designations, authorizations for the release of Information and rights
to reimbursement made by or relating to Spectra Energy Participants under Duke Energy Benefit Plans shall be transferred to and be in full force and effect under the corresponding Spectra Energy Benefit Plans until such beneficiary designations,
authorizations or rights are replaced or revoked by, or no longer apply, to the relevant Spectra Energy Participant. 
 Section 11.8
Not A Change In Control. The Parties hereto acknowledge and agree that the transactions contemplated by the Separation Agreement and this Agreement do not constitute a “change in control” for purposes of any Duke Energy Benefit Plan
or Spectra Energy Benefit Plan. 
 ARTICLE XII 
 MISCELLANEOUS 
 Section 12.1 Effect If Distribution Does Not Occur. Notwithstanding anything in
this Agreement to the contrary, if the Separation Agreement is terminated prior to the Effective Time, then all actions and events that are, under this Agreement, to be taken or occur effective prior to, as of or following the Distribution Date, or
otherwise in connection with the Separation, shall not be taken or occur except to the extent specifically agreed to in writing by Duke Energy and Spectra Energy and neither Party shall have any Liability or further obligation to the other Party
under this Agreement. 
 Section 12.2 Relationship Of Parties. Nothing in this Agreement shall be deemed or construed by the
Parties or any third party as creating the relationship of principal and agent, partnership or joint venture between the Parties, it being understood and agreed that no provision contained herein, and no act of the Parties, shall be deemed to create
any relationship between the Parties other than the relationship set forth herein. 
 Section 12.3 Affiliates. Each of Duke
Energy and Spectra Energy shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement to be performed by each of their Affiliates, respectively. 
  

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 Section 12.4 Notices. All notices, requests, claims, demands and other communications under
this Agreement, as between the Parties, shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt unless the day of receipt is not a Business Day, in which case it shall be deemed to have been
duly given or made on the next following Business Day) by delivery in person, by overnight courier service, by facsimile with receipt confirmed (followed by delivery of an original via overnight courier service) or by registered or certified mail
(postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 12.3): 
 To Duke Energy: 
 Duke Energy Corporation

 526 South Church Street 
 Charlotte, North Carolina 28202 
 Attn: Chief Legal Officer 
 Facsimile: 704-382-8137 
 To Spectra Energy:

 Spectra Energy Corp 
 5400
Westheimer Court 
 Houston, Texas 77056 
 Attn: General Counsel 
 Facsimile: 713-627-5536 
 Section 12.5 Entire Agreement. This Agreement, the Separation Agreement, and each other Ancillary Agreement, including any annexes, schedules and exhibits hereto and thereto, as well as any other
agreements and documents referred to herein and therein, shall constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such
subject matter. In the event of any inconsistency between this Agreement and any Schedule hereto, the Schedule shall prevail. 
 Section 12.6 Waivers. The failure of any Party to require strict performance by any other Party of any provision in this Agreement will not waive or diminish that Party’s right to demand strict performance thereafter of
that or any other provision hereof. 
 Section 12.7 Amendments. Subject to the terms of Section 12.8 of this Agreement, this
Agreement may not be modified or amended except by an agreement in writing signed by each of the Parties. 
 Section 12.8
Termination, Etc. This Agreement (including Article X hereof (Indemnification) hereof) may be terminated and abandoned at any time prior to the Distribution 

  

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Date by and in the sole discretion of Duke Energy without the approval of Spectra Energy or the stockholders of Duke Energy and it shall be deemed terminated
if and when the Separation Agreement is terminated. In the event of such termination, no Party shall have any liability of any kind to any other Party or any other Person. After the Distribution Date, this Agreement may not be terminated except by
an agreement in writing signed by each of the Parties. 
 Section 12.9 Governing Law. This Agreement shall be governed by and
construed in accordance with the internal Laws, and not the Laws governing conflicts of Laws (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law), of the State of New York. 
 Section 12.10 Dispute Resolution. Any controversy, dispute or claim arising out of, in connection with, or in relation to the
interpretation, performance, nonperformance, validity, termination or breach of this Agreement or otherwise arising out of, or in any way related to this Agreement or the transactions contemplated hereby, including any claim based on contract, tort,
statute or constitution (but excluding any controversy, dispute or claim arising out of any Contract relating to the use or lease of real property if any third party is a necessary party to such controversy, dispute or claim) (collectively,
“Agreement Dispute”), shall be governed by, and be subject to, the provisions of Article IX of the Separation Agreement, which provisions (and related defined terms) are hereby incorporated by reference into this Agreement and any
references to “Agreement” in such Article IX as incorporated herein shall be deemed to be references to this Agreement; provided, however, any references to “Agreement” or “Agreement Disputes” in such
Article IX as incorporated herein shall be deemed to be references to this Agreement and Agreement Disputes as defined in this Agreement. Notwithstanding the foregoing provisions of this Section 12.10, (i) disputes regarding the amount of
the Final Retirement Plan Transfer Amount or True-Up Amount shall be determined exclusively pursuant to the dispute resolution procedures set out in Section 3.2 of this Agreement, (ii) no Dispute Notice relating to the characterization of
an individual as a Duke Energy Employee, Spectra Energy Employee, Former Duke Energy Employee or Former Spectra Energy Employee may be provided under this Section 12.10 more than one hundred eighty (180) days after the Distribution, and
(iii) no Dispute Notice may be provided under this Section 12.10 after the second anniversary of the Distribution Date. 
 Section 12.11 Consent to Jurisdiction. Subject to the provisions of Article IX of the Separation Agreement, each of the Parties irrevocably submits to the exclusive jurisdiction of (a) the Supreme Court of the State of New
York, New York County, and (b) the United States District Court for the Southern District of New York (the “New York Courts”), for the purposes of any suit, action or other proceeding to compel arbitration or for provisional
relief in aid of arbitration in accordance with Article IX of the Separation Agreement or for provisional relief to prevent irreparable harm, and to the non-exclusive jurisdiction of the New York Courts for the enforcement of any award issued
thereunder. Each of the Parties further agrees that service of any process, summons, notice or document by U.S. registered mail to such Party’s respective address set forth in Section 12.4 of this Agreement shall be effective service of
process for any action, suit or proceeding in the New York Courts with respect to any matters to which it has submitted to jurisdiction in this Section 12.11. Each of the Parties irrevocably and unconditionally waives any objection to the
laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in the New York Courts, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such
court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. 
  

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 Section 12.12 Titles and Headings. Titles and headings to sections herein are inserted for
the convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
 Section 12.13 Counterparts. This Agreement may be executed in more than one counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been
signed by each of the Parties and delivered to the other Parties. 
 Section 12.14 Assignment. Except as otherwise provided for
in this Agreement, this Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party without the prior written Consent of the other Party, and any attempt to assign any rights or obligations arising under this
Agreement without such consent shall be void; provided, that, a Party may assign this Agreement in connection with a merger transaction in which such Party is not the surviving entity or the sale by such Party of all or substantially
all of its Assets; and provided, further, that the surviving entity of such merger or the transferee of such Assets shall agree in writing, reasonably satisfactory to the other Parties, to be bound by the terms of this Agreement as if
named as a “Party” hereto. 
 Section 12.15 Severability. In the event any one or more of the provisions contained in
this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties
shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 Section 12.16 Successors and Assigns. The provisions of this Agreement and the obligations and rights hereunder shall be
binding upon, inure to the benefit of and be enforceable by (and against) the Parties and their respective successors and permitted transferees and assigns. 
 Section 12.17 Exhibits and Schedules. The Exhibits and Schedules shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein.

 Section 12.18 Specific Performance. The Parties agree that irreparable damage would occur in the event that the provisions of
this Agreement were not performed in accordance with their specific terms. Accordingly, it is hereby agreed that the Parties shall be entitled to (i) an injunction or injunctions to enforce specifically the terms and provisions hereof in any
arbitration in accordance with Section 12.10 of this Agreement, (ii) provisional or temporary injunctive relief in accordance therewith in any New York Court, and (iii) enforcement of any such award of an arbitral tribunal or a New
York Court in any court of the United States, or any other any court or tribunal sitting in any state of the United States or in any foreign country that has jurisdiction, this being in addition to any other remedy or relief to which they may be
entitled. 
  

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 Section 12.19 Waiver of Jury Trial. SUBJECT TO SECTIONS 12.10, 12.11 AND 12.18 OF THIS
AGREEMENT, EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY COURT PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF AND PERMITTED UNDER OR IN CONNECTION
WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12.19. 
 Section 12.20 Force Majeure. No Party (or any Person acting on its
behalf) shall have any liability or responsibility for failure to fulfill any obligation (other than a payment obligation) under this Agreement so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated,
hindered or delayed as a consequence of circumstances of Force Majeure. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event: (a) notify the other Party of the nature and
extent of any such Force Majeure condition and (b) use due diligence to remove any such causes and resume performance under this Agreement as soon as reasonably practicable. 
 Section 12.21 Authorization. Each of the Parties hereby represents and warrants that it has the power and authority to execute, deliver and
perform this Agreement, that this Agreement has been duly authorized by all necessary corporate action on the part of such Party, that this Agreement constitutes a legal, valid and binding obligation of each such Party and that the execution,
delivery and performance of this Agreement by such Party does not contravene or conflict with any provision of law or of its charter or bylaws or any material agreement, instrument or order binding on such Party. 
 Section 12.22 No Third-Party Beneficiaries. Except as otherwise expressly provided in this Agreement, this Agreement is solely for the
benefit of the Parties and should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement. 
 Section 12.23 Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be
construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing any instrument to be drafted. 
 [Remainder of this page intentionally left blank.] 
  

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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and year
first above written. 
  

			
	DUKE ENERGY CORPORATION
		
	By:	 	 /s/ James E. Rogers
  

	Name:	 	James E. Rogers
	Title:	 	President and Chief Executive Officer
	
	SPECTRA ENERGY CORP
		
	By:	 	 /s/ Fred J. Fowler
  

	Name:	 	Fred J. Fowler
	Title:	 	President and Chief Executive Officer

 Schedules and exhibits omitted pursuant to Item 601 of Reg. S-K. The Company agrees to furnish supplementally a copy of
any omitted schedule to the Commission upon request.

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