APPROVED BY THE CINERGY CORP.
BOARD OF DIRECTORS ON DECEMBER 10, 1999
JANUARY 1, 2000 AMENDMENT TO THE CINERGY CORP. UNION
EMPLOYEES' 401(k) PLAN
The Cinergy Corp. Union Employees' 401(k) Plan, as amended and restated
effective January 1, 1998, is hereby amended pursuant to Article 11 thereof.
Amendments with respect to the modification of Sections 3.1, 4.1, and 7.1 are
effective January 1, 2000.
(1) EXPLANATION OF AMENDMENTS
The purpose of the amendments is to provide for automatic or passive
enrollment in the Plan as of each new employee's employment date. Section 3.1 is
amended, effective January 1, 2000, by providing that each new employee is
automatically enrolled in the Plan as a participant on his/her employment date
as to before-tax contributions unless the employee notifies the Plan
administrator in writing that he/she declines participation.
Section 4.1 is amended, effective January 1, 2000, to provide that each
new employee who is enrolled as a participant as of his/her employment date as
to before-tax contributions will be deemed to have made an initial deferred
percentage election of one percent.
Section 7.1 is amended, effective January 1, 2000, to provide that the
automatic deferrals of new employees who are enrolled as participants as of
their employment dates as to before-tax contributions will be deposited in one
or more investment funds selected by the Plan Administrator and in accordance
with procedures established by the Plan Administrator.
(2) AMENDMENTS EFFECTIVE JANUARY 1, 2000
(a) SECTION 3.1 AS AMENDED
Section 3.1, as hereby amended, reads as follows:
"3.1 PARTICIPATION.
Each Eligible Employee as of the Effective Date who
was a Participant in the Plan as of December 31, 1997
will continue to be a participant on the Effective
Date.
Prior to January 1, 2000, each other Eligible
Employee may commence participation in the Plan as of
the later of the Effective Date or the Eligible
Employee's Employment Commencement
Date, by electing to make Employee After-Tax or
Deferred Compensation Contributions, or by making a
Rollover Contribution, pursuant to Article 4
(Contributions).
On or after January 1, 2000, each other Eligible
Employee shall automatically commence participation
in the Plan as of the Eligible Employee's Employment
Commencement Date as to Employee Deferred
Compensation Contributions unless the Eligible
Employee affirmatively notifies the Plan
Administrator in writing that the Eligible Employee
does not desire to commence participation in the
Plan. Any Eligible Employee who affirmatively elects
not to participate in the Plan as of his Employment
Commence Date may subsequently commence participation
in the Plan by electing to make After-Tax or Deferred
Compensation Contributions, or by making a Rollover
Contribution, pursuant to Article 4 (Contributions).
Any Eligible Employee who commences participation as
of his Employment Commencement Date may also elect to
make Employee After-Tax Contributions or a Rollover
Contribution, pursuant to Article 4 (Contributions)."
(b) SECTION 4.1 AS AMENDED
Section 4.1, as hereby amended, reads as follows:
"4.1 DEFERRED COMPENSATION CONTRIBUTIONS
Each Participant may elect, in accordance with rules
established by the Plan Administrator, to reduce the
Participant's Compensation by any percentage up to
15 percent, in increments of one-half percent, and
to have the amount by which the Participant's
Compensation is reduced contributed on the
Participant's behalf by the Employer as a Deferred
Compensation Contribution to the Plan. Prior to
January 1, 2000, the election will be effective as
soon as administratively possible after the date the
Employee becomes eligible to participate and
notifies the Plan Administrator of the deferral
percentage. On or after January 1, 2000, each
Eligible Employee who becomes a Participant as of
his Employment Commencement Date will be deemed to
have made an initial deferral percentage election of
1 percent.
A participant may elect, in accordance with rules
established by the Plan Administrator, to increase,
decrease, or discontinue the Participant's
Compensation reductions. Such an election will be
effective as soon as administratively possible after
receipt of the election by the Plan Administrator
and will be effective only with respect to
Compensation not yet earned as of the effective date
of the election.
The Plan Administrator may adopt rules concerning
the administration of this section. The Deferred
Compensation Contributions made on behalf of each
Participant shall be paid by
each Employer to the Trustee and allocated to the
Participant's Deferred Compensation Contributions
Account as soon as practical after the end of the
pay period to which the Deferred Compensation
Contributions relate, but in no case later than
the fifteenth business day of the month following
the month in which those amounts would otherwise
have been payable to the Participant."
(c) SECTION 7.1 AS AMENDED
Section 7.1, as hereby amended, reads as follows:
"7.1 AFTER-TAX, DEFERRED COMPENSATION, EMPLOYER MATCH,
ESOP TRANSFER, AND ROLLOVER CONTRIBUTION ACCOUNTS
(a) INVESTMENT OF CONTRIBUTIONS. Each
Participant may elect to have the After-Tax,
Deferred Compensation, and Rollover
Contributions made on the Participant's
behalf invested in any one or more of the
Investment Funds in increments of 1 percent,
in accordance with procedures established by
the Plan Administrator.
(b) INVESTMENT TRANSFERS. Each Member may elect
as of any date to have the assets in the
Member's ESOP Transfer, Employer Match,
After-Tax, Deferred Compensation, and
Rollover Contributions Accounts reallocated
among the Investment Funds, in increments of
1 percent, in accordance with procedures
established by the Plan Administrator.
(c) INVESTMENT ELECTIONS. Each Participant may
make the elections described in subsection
(a) by making an election with the Plan
Administrator upon becoming a Participant;
PROVIDED, HOWEVER, that each Participant who
(on or after January 1, 2000) commences
participation as of his Employment
Commencement Date will have his Deferred
Compensation Contributions automatically
deposited in one or more Investment Funds
selected by the Plan Administrator and in
accordance with procedures established by
the Plan Administrator.
(d) TRANSFER OF ASSETS. The Plan Administrator
shall cause the transfer of moneys or other
property from the appropriate Investment
Fund to the other Investment Fund as may be
necessary to carry out the aggregate
transfer transactions elected by the
Members, in accordance with uniform rules
therefor established by the Plan
Administrator."
This Amendment is executed and approved by the duly authorized officers
of Cinergy Corp., effective as of the dates set forth herein.
CINERGY CORP.
By: ____________________________
James E. Rogers
Vice Chairman and
Chief Executive Officer
Dated: _________________________
APPROVED:
By: _________________________________
Jerome A. Vennemann
Acting General Counsel
and Assistant Corporate Secretary
Dated: ______________________________