Common use of BENEFITS AND PENSION Clause in Contracts

BENEFITS AND PENSION. (a) The Company agrees to provide the “Choices” Flexible Benefit Program as described in the Company booklets or other sources, benefit plan documents and policies of insurance for all full-time and Continuous Part-time employees of all Bargaining Units. All of the benefit plans described in the Company booklets or other sources shall be as more particularly described and set forth in the respective benefit plans and policies which plans and policies shall be made available for inspection by the Union. The Company will bear 100% of the premium costs of any applicable core components of the benefits listed below, as specified in the “Choices Flexible Benefit Program” plan documents, to keep the following policies of insurance in force: Extended Health Care Plan Dental Plan Life Insurance Plan Accident Insurance Plan Long Term Disability Plan Employees are then able to use their Flexible Benefits credits, described below, to purchase additional coverage in accordance with the rules in the plan documents. Employees’ Flexible Benefit credits under the “Choices” Flexible Benefit Program will be based upon the following formulas: The flex credit formula for regular full-time employees will be 1.75% of base straight-time annual wages plus $969.00. For regular full-time employees with three or more years of continuous company service, the formula will be 3.75% of base straight-time annual wages plus $969.00. The flex credit formula for regular Continuous Part-time Employees will be 1.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part-time annual earnings, or the employee’s actual base straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. For regular Continuous Part-time employees with three (3) or more years of continuous company service, the formula will be 3.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part- time annual earnings, or the employee’s actual base straight- time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. Effective for enrolment periods of benefit coverage during the term of the collective agreement the benefit price tags will be adjusted to reflect an 85% employer and 15% employee cost sharing percentage from the prior year’s cost. The Company agrees that there will be no changes to the “Choices” Flexible Benefit Program plan content for the duration of the Collective Agreement. The Company reserves the right to make administrative or insurer changes that do not affect the Plan content during the term of the Collective Agreement.

BENEFITS AND PENSION. (a) The Company agrees to provide the “Choices” Flexible Benefit Program as described in the Company booklets or other sources, benefit plan documents and policies of insurance for all full-time and Continuous Part-time employees of all Bargaining Units. All of the benefit plans described in the Company booklets or other sources shall be as more particularly described and set forth in the respective benefit plans and policies which plans and policies shall be made available for inspection by the Union. The Company will bear 100% of the premium costs of any applicable core components of the benefits listed below, as specified in the “Choices Flexible Benefit Program” plan documents, to keep the following policies of insurance in force: Extended Health Care Plan Dental Plan Life Insurance Plan Accident Insurance Plan Long Term Disability Plan Employees are then able to use their Flexible Benefits credits, described below, to purchase additional coverage in accordance with the rules in the plan documents. Employees’ Flexible Benefit credits under the “Choices” Flexible Benefit Program will be based upon the following formulas: The flex credit formula for regular full-time employees will be 1.75% of base straight-time annual wages plus $969.00925.00. For regular full-time employees with three or more years of continuous company service, the formula will be 3.75% of base straight-time annual wages plus $969.00925.00. The flex credit formula for regular Continuous Part-time Employees will be 1.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part-time annual earnings, or the employee’s actual base straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75693.75. For regular Continuous Part-time employees with three (3) or more years of continuous company service, the formula will be 3.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part- time annual earnings, or the employee’s actual base straight- time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75693.75. Effective for enrolment periods of benefit coverage during the term of the collective agreement in calendar 2007, the benefit price tags for 2006 will be adjusted increased by three percent (3%) for each of: Extended Health Care Plan; Dental Plan; Life Insurance Plan (employee life up to reflect an 85% employer three times salary); and 15% Long Term Disability Plan. Effective for enrolment of benefit coverage in calendar 2008, the benefit price tags for 2007 will be increased by three percent (3%) for each of: Extended Health Care Plan; Dental Plan; Life Insurance Plan (employee cost sharing percentage from life up to three times salary); and Long Term Disability Plan. Effective for enrolment of benefit coverage in calendar 2009, the prior year’s costbenefit price tags for 2008 will be increased by three percent (3%) for each of: Extended Health Care Plan; Dental Plan; Life Insurance Plan (employee life up to three times salary); and Long Term Disability Plan. The Company agrees that there will be no changes to the “Choices” Flexible Benefit Program plan content for the duration of the Collective AgreementAgreement that expires December 31, 2008. The Company reserves the right to make administrative or insurer changes that do not affect the Plan content during the term of the Collective Agreement.

BENEFITS AND PENSION. (a) The Company agrees to provide the “Choices” Flexible Benefit Program as described in the Company booklets or other sources, benefit plan documents and policies of insurance for all full-time and Continuous Part-time employees of all Bargaining Units. All of the benefit plans described in the Company booklets or other sources shall be as more particularly described and set forth in the respective benefit plans and policies which plans and policies shall be made available for inspection by the Union. The Company will bear 100% of the premium costs of any applicable core components of the benefits listed below, as specified in the “Choices Flexible Benefit Program” plan documents, to keep the following policies of insurance in force: Extended Health Care Plan Dental Plan Life Insurance Plan Accident Insurance Plan Long Term Disability Plan Employees are then able to use their Flexible Benefits credits, described below, to purchase additional coverage in accordance with the rules in the plan documents. Employees’ Flexible Benefit credits under the “Choices” Flexible Benefit Program will be based upon the following formulas: The In the year of hire the flex credit credits formula for regular full-full- time employees will be 1.75% of base straight-time annual wages plus $969.00. For regular full-time employees with three or more years of continuous company service, In the following calendar year the formula will be 3.75% of base straight-straight time annual wages plus $969.00. The In the year of hire the flex credit formula for regular Continuous Part-time Employees will be 1.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part-time annual earnings, or the employee’s actual base straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. For In the following year for regular Continuous Part-time employees with three (3) or more years of continuous company service, the formula will be 3.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part- Part-time annual earnings, or the employee’s actual base straight- straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. Effective for enrolment periods of benefit coverage during the term of the collective agreement the benefit price tags will be adjusted to reflect an 85% employer and 15% employee cost sharing percentage from the prior year’s cost. The Company agrees that there will be no changes to the “Choices” Flexible Benefit Program plan content for the duration of the Collective Agreement. The Company reserves the right to make administrative or insurer changes that do not affect the Plan content during the term of the Collective Agreement.

BENEFITS AND PENSION. (a) The Company agrees to provide the “Choices” Flexible Benefit Program as described in the Company booklets or other sources, benefit plan documents and policies of insurance for all full-time and Continuous Part-time employees of all Bargaining Units. All of the benefit plans described in the Company booklets or other sources shall be as more particularly described and set forth in the respective benefit plans and policies which plans and policies shall be made available for inspection by the Union. The Company will bear 100% of the premium costs of any applicable core components of the benefits listed below, as specified in the “Choices Flexible Benefit Program” plan documents, to keep the following policies of insurance in force: • Extended Health Care Plan • Dental Plan • Life Insurance Plan • Accident Insurance Plan • Long Term Disability Plan Employees are then able to use their Flexible Benefits credits, described below, to purchase additional coverage in accordance with the rules in the plan documents. Employees’ Flexible Benefit credits under the “Choices” Flexible Benefit Program will be based upon the following formulas: The flex credit formula for regular full-time employees will be 1.75% of base straight-time annual wages plus $969.00. For regular full-time employees with three or more years of continuous company service, the formula will be 3.75% of base straight-time annual wages plus $969.00. The flex credit formula for regular Continuous Part-time Employees full-time employees will be 1.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part-Part- time annual earnings, or the employee’s actual base straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. For regular Continuous Part-time employees with three (3) or more years of continuous company service, the formula will be 3.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part- Part-time annual earnings, or the employee’s actual base straight- straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. Effective for enrolment periods of benefit coverage during the term of the collective agreement the benefit price tags will be adjusted to reflect an 85% employer and 15% employee cost sharing percentage from the prior year’s cost. The Company agrees that there will be no changes to the “Choices” Flexible Benefit Program plan content for the duration of the Collective Agreement. The Company reserves the right to make administrative or insurer changes that do not affect the Plan content during the term of the Collective Agreement.

BENEFITS AND PENSION. (a) The Company agrees to provide the “Choices” Flexible Benefit Program as described in the Company booklets or other sources, benefit plan documents and policies of insurance for all full-time and Continuous Part-time employees of all Bargaining Units. All of the benefit plans described in the Company booklets or other sources shall be as more particularly described and set forth in the respective benefit plans and policies which plans and policies shall be made available for inspection by the Union. The Company will bear 100% of the premium costs of any applicable core components of the benefits listed below, as specified in the “Choices Flexible Benefit Program” plan documents, to keep the following policies of insurance in force:  Extended Health Care Plan  Dental Plan  Life Insurance Plan  Accident Insurance Plan  Long Term Disability Plan Employees are then able to use their Flexible Benefits credits, described below, to purchase additional coverage in accordance with the rules in the plan documents. Employees’ Flexible Benefit credits under the “Choices” Flexible Benefit Program will be based upon the following formulas: The flex credit formula for regular full-time employees will be 1.75% of base straight-time annual wages plus $969.00. For regular full-time employees with three or more years of continuous company service, the formula will be 3.75% of base straight-time annual wages plus $969.00. The flex credit formula for regular Continuous Part-time Employees full-time employees will be 1.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part-Part- time annual earnings, or the employee’s actual base straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. For regular Continuous Part-time employees with three (3) or more years of continuous company service, the formula will be 3.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part- Part-time annual earnings, or the employee’s actual base straight- straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. Effective for enrolment periods of benefit coverage during the term of the collective agreement the benefit price tags will be adjusted to reflect an 85% employer and 15% employee cost sharing percentage from the prior year’s cost. The Company agrees that there will be no changes to the “Choices” Flexible Benefit Program plan content for the duration of the Collective Agreement. The Company reserves the right to make administrative or insurer changes that do not affect the Plan content during the term of the Collective Agreement.

BENEFITS AND PENSION. (a) The Company agrees to provide the “Choices” Flexible Benefit Program as described in the Company booklets or other sources, benefit plan documents and policies of insurance for all full-time and Continuous Part-time employees of all Bargaining Units. All of the benefit plans described in the Company booklets or other sources shall be as more particularly described and set forth in the respective benefit plans and policies which plans and policies shall be made available for inspection by the Union. The Company will bear 100% of the premium costs of any applicable core components of the benefits listed below, as specified in the “Choices Flexible Benefit Program” plan documents, to keep the following policies of insurance in force: • Extended Health Care Plan • Dental Plan • Life Insurance Plan • Accident Insurance Plan • Long Term Disability Plan Employees are then able to use their Flexible Benefits credits, described below, to purchase additional coverage in accordance with the rules in the plan documents. Employees’ Flexible Benefit credits under the “Choices” Flexible Benefit Program will be based upon the following formulas: The In the year of hire, flex credit formula for regular full-full time employees will be 1.75% of base straight-straight time annual wages plus $969.00. For regular full-time employees with three or more years of continuous company serviceIn the following calendar year, the formula will be 3.75% of base straight-straight time annual wages wages, plus $969.00. The 969.00 In the year of hire the flex credit formula for regular Continuous Part-time Employees full-time employees will be 1.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part-time annual earnings, or the employee’s actual base straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. For In the following calendar year for regular Continuous Part-time employees with three (3) or more years of continuous company service, the formula will be 3.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part- time annual earnings, or the employee’s actual base straight- straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. Effective for enrolment periods of benefit coverage during the term of the collective agreement the benefit price tags will be adjusted to reflect an 85% employer and 15% employee cost sharing percentage from the prior year’s cost. The Company agrees that there will be no changes to the “Choices” Flexible Benefit Program plan content for the duration of the Collective Agreement. The Company reserves the right to make administrative or insurer changes that do not affect the Plan content during the term of the Collective Agreement.

BENEFITS AND PENSION. (a) The Company agrees to provide the “‘Choices” Flexible Benefit Program as described in the Company booklets or other sources, benefit plan documents and policies of insurance for all full-time and Continuous Part-time employees of all Bargaining Units. All of the benefit plans described in the Company booklets or other sources shall be as more particularly described and set forth in the respective benefit plans and policies which plans and policies shall be made available for inspection by the Union. The Company will bear 100% of the premium costs of any applicable core components of the benefits listed below, as specified in the “Choices Flexible Benefit Program” plan documents, to keep the following policies of insurance in force: Extended Health Care Plan Dental Plan Life Insurance Plan Accident Insurance Plan Long Term Disability Plan Employees are then able to use their Flexible Benefits credits, described below, to purchase additional coverage in accordance with the rules in the plan documents. Employees’ Flexible Benefit credits under the “Choices” Flexible Benefit Program will be based upon the following formulas: The flex credit formula for regular full-time employees will be 1.75% of base straight-time annual wages plus $969.00. For regular full-time employees with three or more years of continuous company service, the formula will be 3.75% of base straight-time annual wages plus $969.00. The flex credit formula for regular Continuous Part-time Employees will be 1.75% of the greater of the employee’s regularly scheduled straight-time Continuous h ime Contin us Part-time annual annuaI earnings, or the employee’s actual base straight-time earnings in the preceding twelve calendar months (normally October 1 to September 30), plus $726.75. For regular Continuous Part-time employees with three (3) or more years of continuous company service, the formula will be 3.75% of the greater of the employee’s regularly scheduled straight-time Continuous Part- time annual earnings, or the employee’s actual base straight- time earnings in the preceding twelve calendar months (normally October 1 to September 30plus Effective for enrolment of benefit coverage in calendar the benefit price tags for will be increased by three percent (3%) for each of: Extended Health Care Plan; Dental Plan; Life Insurance Plan (employee life up to three times salary), plus $726.75; and Long Term Disability Plan. Effective for enrolment periods of benefit coverage during the term of the collective agreement in calendar the benefit price tags for will be adjusted increased by three percent (3%) for each of: Extended Health Care Plan; Dental Plan; Life Insurance Plan (employee life up to reflect an 85% employer three times salary); and 15% Long Term Disability Plan. Effective for enrolment of benefit coverage in calendar the benefit price tags for will be increased by three percent (3%) for each of: Extended Health Care Plan; Dental Plan; Life Insurance Plan (employee cost sharing percentage from the prior year’s costlife up to three times salary); and Long Term Disability Plan. The Company agrees that there will be no changes to the “Choices” Flexible Benefit Program plan content for the duration of the Collective Agreement. Agreement that expires December The Company reserves the right to make administrative or insurer changes that do not affect the Plan content during the term of the Collective Agreement. The Company agrees to provide a Weekly Indemnity benefit as described in Company booklets or other sources, benefit plan documents or policies of insurance for the duration of the agreement. The benefit described in Company booklets or other sources shall be as more particularly described and set forth in the respective benefit plans and policies, which plans and policies may be made available for inspection by the Union. The Company will bear of the premium cost of Weekly Indemnity benefit. For Continuous Part-time employees, Weekly Indemnity will be based upon the employee’s posted work schedule for the first two (2) weeks of disability, and thereafter will be based upon the Continuous Pa time empIoy reguIarIy sch uI Continuous Pa time hou of work. The Company agrees to provide the “Pension Choices” Plan as described in the Company booklets or other sources, and pension benefit plan documents for all full-time and Continuous Part- time employees of all Bargaining Units. The “Pension Choices” Plan described in the Company booklets or other sources shall be as more particularly described and set forth in the pension plan documents, which plans and policies shall be made available for inspection by the Union. Incentive Plan Effective January the basis on which any Incentive Plan payment is calculated will be modified. The modified plan will be based upon a target payout of comprised of District Departmental targets and Duke Energy Earnings Per Share Any Incentive Plan payout will be based upon the employee’s incentive eligible earnings which includes straight-time earnings, vacation pay, holiday pay, paid personal days, overtime pay, and shift premiums. For clarity, any other forms of payment will not be included in the employee’s incentive eligible earnings. The rules and administration and payout formula of the Company’s Short Term Incentive Plan will apply to this Incentive Plan. The Incentive Plan for employees will be calculated on: Operations targets a sliding scale based on the achievement of the targets. The sliding scale starts at an achievement level of fifty (50%) percent each calendar year. Achievement below fifty percent (50%) in any calendar year results in no payout under this component of the Incentive Plan. At one hundred percent (100%) achievement level in a calendar year, the District Department component of the Incentive Plan payment will be: One and three-quarters percent (1.75%) of the employee’s incentive eligible earnings in each of the calendar years and or At the achievement level of one hundred and fifty percent (150%) or more in a calendar year, the maximum District Department component of the Incentive Plan payment will be: Two and five-eighths percent (2.625%) of the employee’s incentive eligible earnings in each of the calendar years and Duke Energy Earnings Per Share a sliding scale based on the achievement of the target The sliding scale starts at an achievement level of fifty (50%) percent each calendar year. Achievement below fifty percent (50%) in any calendar year results in no payout under this component of the Incentive Plan. At one hundred percent (100%) achievement level in a calendar year, the component of the Incentive Plan payment will be: Three-quarters percent (0.75%) of the employee’s incentive eligible earnings in each of the calendar years and or At the achievement level of two hundred percent (200%) or more in a calendar year, the maximum component of the Incentive Plan payment will be: One and one-half percent (1.50%) of the employee’s incentive eligible earnings in each of the calendar years and The District Department and Duke Energy Earnings Per Share targets will be established annually by the Company. Any applicable payment under this Incentive Plan will be paid by March of the following calendar year. Bulletin Boards The Company will provide one (I)bulletin board in each Branch or Office location in the Region for the purpose of posting official Union notices. All notices posted on this bulletin board will have the prior approval and signature of an elected representative of the Local or Unit. The Company will issue a collective agreement to each employee and each new employee upon induction into the Company. This agreement shall be provided in printed booklet form.