Long-Term Incentive Plan-Awards in 1999
- Awards are performance awards granted under the Duke Energy 1998 Long-Term Incentive Plan and are represented by units denominated in shares of Duke Energy Common Stock (performance shares). Each performance share represents the right to receive, upon vesting, one share of Duke Energy Common Stock. These awards, with the exception of a 75,000 performance share award to Mr. Priory, fully vest on the seventh anniversary of the date of the award. The awards also vest in the event of the death or disability of the recipient or a change in control of Duke Energy as specified in the Plan. The awards have an accelerated vesting feature allowing one third to vest upon achievement of an increase in total shareholder return averaging 50% or more for twenty consecutive business days; one third to vest upon achievement of an increase in total shareholder return averaging 90% or more for twenty consecutive business days; and one third to vest upon achievement of an increase in total shareholder return averaging 130% or more for twenty consecutive business days, all calculated from a base amount specified in each award and assuming dividends are reinvested. If any of such targets are achieved before the third anniversary of the date of the award, the relevant part of the award will vest on the third anniversary. Vesting under the awards is generally subject to the continued employment of the grantee with Duke Energy to the time of vesting. With respect to Mr. Priory’s award of 75,000 performance shares, any unvested performance shares held by Mr. Priory on the seventh anniversary of the date of the award will be forfeited. If Mr. Priory dies or becomes disabled prior to the seventh anniversary of the date of the award, a portion of the unvested performance shares remaining at that time will vest based upon the length of his employment from the date of the award. The performance share awards also grant an equal number of dividend equivalents, which represent the right to receive cash payments equivalent to the cash dividends paid on the number of shares of Duke Energy Common Stock represented by the performance shares awarded, until the related performance shares vest or are forfeited.
