Document:

exv10w24

Exhibit 10.24

May 14, 2008

CONFIDENTIAL

Mr. Stephen P. Smith

7809 Lambton Park Road

New Albany, Ohio 43054

			
	Re:	 	Offer of Employment

Dear Steve:

This letter serves as our offer to you for employment as Executive Vice President and Chief
Financial Officer of NiSource, Inc. The terms of your offer are as follows:

1. Commencement: You will be employed as Executive Vice President beginning June 1, 2008
and as Chief Financial Officer on August 4, 2008. Until such time as you become Chief Financial
Officer, you will perform only those services as are mutually agreed upon by you and the President
and Chief Executive Officer of NiSource Inc.

2. Position: You will report to the President and Chief Executive Officer of NiSource Inc.

3. Other Positions: You may continue to serve on the Board of Directors of Natural
Resource Partners, L.P. and as a member of the Audit Committee of the Board of Directors of Natural
Resources Partners, L.P.

4. Compensation: Your annual base salary will be $500,000, payable in installments not
less frequently than monthly. Your annual base salary may be adjusted periodically.

5. Benefits: While you are employed by NiSource Inc., you will be entitled to participate
in all benefit plans, including without limitation, any health, life and disability insurance
plans, qualified and nonqualified retirement and pension plans, or any other plan or benefit
generally afforded to similarly situated executives of NiSource Inc.

6. Sign-On Bonus: To compensate you for the loss of a prorated portion of the annual bonus
from your prior employer, you will receive a sign-on bonus of $150,000, payable in a lump-sum by
June 30, 2008.

7. Short-Term Incentive: You will be entitled to an annual incentive opportunity under the
NiSource Inc. Corporate Incentive Plan (“Corporate Incentive Plan”). This annual incentive
opportunity will be based on a target equal to 65% of your annual base salary, with a range from
32.5% to 97.5% of your annual base salary. The payment of the short-term incentive is dependent
upon Company performance, your own performance, and your status as an employee in good standing.
Notwithstanding the foregoing:

 

 

a. You will be guaranteed an annual incentive opportunity in 2008 equal to not less than the
“target” level but prorated based on the number of months remaining in the performance period after
June 1, 2008;

b. You will be guaranteed an annual incentive opportunity in 2009 and 2010 equal to not less than
the “target” level; and

c. Your annual incentive opportunity for the first 5 months of 2011 is guaranteed to equal not less
than 5/12 of the “target” level with the incentive opportunity for the remaining months in the
performance period calculated under the Corporate Incentive Plan.

8. Long-Term Incentive:

a. You will be entitled to participate in the NiSource Inc. 1994 Long Term Incentive Plan, as
amended and restated effective January 1, 2005 (the “LTIP”), in an amount and structure comparable
to other executives of NiSource Inc. and as approved by the Officer Nomination and Compensation
Committee of the Board of Directors and the NiSource Inc. Board of Directors.

b. For each fiscal year beginning after June 1, 2008, you shall receive an award with a value of at
least $600,000 under the LTIP (or such successor or other plan as may be adopted by NiSource Inc.),
to the extent that NiSource Inc. grants awards to other executives.

c. To compensate you for the loss of a portion of your long term incentive award from your prior
employer, you will also receive a grant of contingent stock pursuant to the LTIP. The number of
shares to be granted will be determined by dividing $600,000 by the fair market value of one common
share of NiSource Inc. on the date of grant. Vesting of the contingent stock shall be based solely
on the passage of time and the contingent stock shall vest in 1/3 increments on December 31, 2008,
December 31, 2009 and December 31, 2010 and fully transferable shares of NiSource Inc. common stock
will be delivered to you upon such vesting.

9. Bonus Payments: As additional compensation for the loss of a portion of your long term
incentive award from your prior employer, you will receive the following payments during your
employment with the Company: $135,000 on December 31, 2008, $135,000 on December 31, 2009, and
$135,000 on December 31, 2010. Notwithstanding the foregoing, in the event of your death any
unpaid amounts shall be settled in cash within 30 days after the date of your death.

10. Change in Control: NiSource Inc. will enter into a Change in Control Agreement with
you on substantially the same terms and in substantially the same form as set forth in the Change
in Control Agreement attached as Exhibit A.

11. Severance:

a. If, other than in connection with a change in control, NiSource Inc. terminates your employment
for any reason, other than for “cause” (as defined below), or you terminate your

2

 

employment with NiSource Inc. for “good reason” (as defined below), you will be entitled to receive
the following severance benefits on the date of termination:

	 	1)	 	A lump-sum payment equal to your annual base salary, as then in effect;
	 
	 	2)	 	A lump-sum payment equal to your prorated annual incentive opportunity under
the Corporate Incentive Plan at the “target” level; and
	 
	 	3)	 	A lump-sum payment equal to 130% of the cost of continuation coverage premiums
for continued participation by you and your dependents for a period of 1 year in any
group health, dental, vision or other welfare benefit plan for which continued
participation is available under Section 4980B of the Internal Revenue Code of 1986, as
amended (“Code”), and Sections 601 through 609 of the Employee Retirement Income
Security Act of 1974, as amended.

In addition, to the severance benefits described above,

	 	4)	 	A payment in the amount of the value of any of the contingent stock described
in Section 8 (c) that has not vested as of the date of your termination shall be paid
in a lump-sum within 30 days following the date of your termination;
	 
	 	5)	 	Any unpaid bonus described in Section 9 shall be paid in a lump-sum within 30
days following the date of your termination; and
	 
	 	6)	 	You shall be entitled to receive reasonable outplacement services beginning
on the date of termination and continuing until the earlier of the date you accept
other employment or 12 months thereafter.

b. For purposes of this letter, “cause” shall mean: 1) your conviction of any crime involving
dishonesty, fraud, or breach of trust; 2) your commission of any willful act constituting fraud or
breach of fiduciary duty to the Company and its shareholders which has a significant adverse impact
on the Company; 3) any act or omission by you that causes a regulatory body with jurisdiction over
the Company to demand or recommend that you be removed or suspended from any position in which you
serve with the Company; 4) your willful and material violation of the Company’s policies or 5) your
substantial nonperformance of your material duties and responsibilities (other than due to partial
or total incapacity) for a period of 10 days following written notice by the Company to you of such
nonperformance.

c. For purposes of this letter, “good reason” means the occurrence of any of the following: 1) a
material diminution in your base compensation or incentive compensation opportunity; 2) a material
diminution in your authority, duties, or responsibilities; 3) a material change in the geographic
location at which you are required to perform services; or 4) any material breach of this letter by
NiSource Inc., its successors, subsidiaries or assigns.

You are required to provide written notice to NiSource Inc. within 45 days of the initial existence
of the condition constituting good reason, and NiSource Inc. shall have 30 days from the giving

3

 

of this written notice in which to remedy the condition constituting good reason and not be
required to pay the compensation and benefits described above. If you fail to provide such written
notice within the period described above, then you will be deemed to have consented to such
condition and NiSource Inc. shall have no obligation to pay the compensation and benefits described
above with respect to such condition.

12. Vacation: You will be entitled to four weeks of paid vacation each year. For 2008,
your vacation will be prorated based on the number of months remaining in the fiscal year after
June 1, 2008.

13. Location: Your principal office will be located in Columbus, Ohio.

14. Relocation: In the event your principal office changes, you will be entitled to
relocation assistance under the NiSource Inc. relocation assistance policy for a period of two
years beginning on the date your principal office changes. Any reimbursement for relocation
expenses in any year may not affect the amount of relocation expenses eligible for reimbursement in
any other year, and reimbursement must be made by December 31 of the year following the year in
which the expense was incurred.

15. Section 409A: NiSource Inc. intends that this letter and the benefits provided herein
comply with the requirements of Section 409A of the Code and, to the maximum extent permitted by
law, shall interpret and administer this letter and the benefits provided herein consistent with
this intent.

16. NiSource Policies. You are expected to familiarize yourself with and observe all
Company policies. Following your acceptance of this offer and during the course of your employment
with the Company, you will have access to confidential and proprietary information of the Company.
You agree to maintain the confidentiality of such information, before, during and after your
employment.

17. Dispute Resolution: Should there be any dispute as to the meaning or application of
this letter, both parties agree to submit the dispute to binding arbitration under the standard
employment rules of the American Arbitration Association. This letter shall be construed in
accordance with the laws of the State of Indiana.

	 	 	 	 	 
	 

	 	Sincerely,	 	 
	 

	 	/s/ Robert C. Skaggs, Jr.
 

Robert C. Skaggs, Jr. 

President and Chief Executive Officer

NiSource Inc.
	 	 

ACCEPTED AND ACKNOWLEDGED

	 	 	 
	     /s/ Stephen P. Smith
 

Stephen P. Smith

	 	 

4exv10w28

Exhibit 10.28

AMENDMENT NO. 1

to

AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

          THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (the “Amendment”) is
made as of September 19, 2008, by and among NISOURCE FINANCE CORP. (the “Borrower”), NISOURCE INC.
(the “Guarantor”), the lenders from time to time parties thereto (the “Lenders”) and BARCLAYS BANK
PLC, as issuer of letters of credit (the “LC Bank”) and as administrative agent (the
“Administrative Agent”) under that certain Amended and Restated Revolving Credit Agreement dated as
of July 7, 2006, by and among the Borrower, the Guarantor, the Lenders and the Administrative Agent
(as further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”).
Defined terms used herein and not otherwise defined herein shall have the meaning given to them in
the Credit Agreement.

WITNESSETH

          WHEREAS, the Borrower, the Guarantor, the Lenders, the LC Bank and the Administrative Agent
are parties to the Credit Agreement; and

          WHEREAS, the Borrower and the Guarantor have requested that the Lenders, the LC Bank and the
Administrative Agent amend the Credit Agreement on the terms and conditions set forth herein;

          WHEREAS, the Borrower, the Guarantor, the Administrative Agent, the LC Bank and the Required
Lenders under Section 11.02 of the Credit Agreement have agreed to amend the Credit
Agreement on the terms and conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto have agreed to the following amendments to the Credit
Agreement:

	1.	 	Amendments to the Credit Agreement. Effective as of September 19, 2008 and subject
to the satisfaction of the condition precedent set forth in Section 2 below, the
Credit Agreement is hereby amended as follows:

	 	1.1.	 	Section 1.01 of the Credit is amended to insert alphabetically therein
the following defined term:

     “Tawney Litigation” means Estate of Garrison G. Tawney, et al. v. Columbia
Natural Resources, LLC, et al., Civil Action No. 03-C-10E (Circuit Court of Roane
County, West Virginia), petition for writ of certiorari, NiSource Inc., et al. v.
Estate of Tawney, et al., U.S. Supreme Court No. 08-219 and No. 08-228.

 

 

	 	1.2.	 	Section 8.01(h) of the Credit Agreement is amended to delete clause
(ii) thereof in its entirety and to substitute the following therefor:
	 
	 		 	(ii) there shall be any period of 30 consecutive days (or, solely with respect to
the Tawney Litigation, a period of 30 consecutive days from and after July 1, 2009)
during which a stay of enforcement of such judgment or order, by reason of a pending
appeal or otherwise, shall not be in effect, except that, with respect to the Tawney
Litigation, expiration or any other failure of a stay of judgment to be in place
shall have no effect under clause (ii) of this Section 8.01(h),
either as a Default or, after lapse of time, as an Event of Default, prior to July
1, 2009; or

	2.	 	Condition of Effectiveness. The effectiveness of this Amendment is subject to the
condition precedent that the Administrative Agent shall have received duly executed originals
of this Amendment from each of the Borrower, the Guarantor, the Required Lenders under
Section 11.02 of the Credit Agreement, the LC Bank and the Administrative Agent.

	3.	 	Representations and Warranties of the Borrower and the Guarantor. Each of the
Borrower and the Guarantor hereby represents and warrants as follows:

	 	(a)	 	Each of the Borrower and the Guarantor hereby represents and warrants that this
Amendment and the Credit Agreement as previously executed and as modified hereby
constitute legal, valid and binding obligations of the Borrower and the Guarantor and
are enforceable against the Borrower and the Guarantor in accordance with their terms
(except as enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditors’ rights generally).
	 
	 	(b)	 	Upon the effectiveness of this Amendment and after giving effect hereto, each
of the Borrower and the Guarantor hereby (i) reaffirms all covenants, representations
and warranties made in the Credit Agreement as modified hereby, and agrees that all
such covenants, representations and warranties shall be deemed to have been remade as
of the date of this Amendment except that any such covenant, representation, or
warranty that was made as of a specific date shall be considered reaffirmed only as of
such date and (ii) certifies to the Administrative Agent, the LC Bank and the Lenders
that no Default has occurred and is continuing.

	4.	 	Reference to the Effect on the Credit Agreement.

	 	4.1.	 	Upon the effectiveness of Section 1 hereof, on and after the date
hereof, each reference in the Credit Agreement (including any reference therein to
“this Credit Agreement,” “hereunder,” “hereof,” “herein” or words of like import
referring thereto) or in any other Credit Document shall mean and be a reference to the
Credit Agreement as modified hereby.
	 
	 	4.2.	 	Except as specifically modified above, the Credit Agreement and all other
documents, instruments and agreements executed and/or delivered in connection

2

 

	 	 	 	therewith, shall remain in full force and effect, and are hereby ratified and
confirmed.
	 
	 	4.3.	 	The execution, delivery and effectiveness of this Amendment shall not operate
as a waiver of any right, power or remedy of the Administrative Agent, the LC Bank or
the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any
other documents, instruments and agreements executed and/or delivered in connection
therewith.

	5.	 	GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE LAWS OF THE STATE OF NEW YORK.

	6.	 	Headings. Section headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose.

	7.	 	Counterparts. This Amendment may be executed by one or more of the parties to this
Amendment on any number of separate counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

3

 

          IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above
written.

	 	 	 	 	 
	 	NISOURCE FINANCE CORP., as Borrower

 	 
	 	By:  	/s/ David J. Vajda
 	 
	 	 	Name:  	David J. Vajda 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	NISOURCE INC., as Guarantor

 	 
	 	By:  	/s/ David J. Vajda
 	 
	 	 	Name:  	David J. Vajda 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	BARCLAYS BANK PLC, as a Lender, as LC 

Bank and as Administrative Agent

 	 
	 	By:  	/s/ Sydney G. Dennis
 	 
	 	 	Name:  	Sydney G. Dennis 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Amendment No. 1 to

Amended and Restated Revolving Credit Agreement

 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as a Lender

 	 
	 	By:  	/s/ Karim Blasetti
 	 
	 	 	Name:  	Karim Blasetti 	 
	 	 	Title:  	Vice President 	 
	 
	 	By:  	                     /s/ Christopher Day
 	 
	 	 	Name:  	Christopher Day 	 
	 	 	Title:  	Associate 	 
	 

Signature Page to Amendment No. 1 to

Amended and Restated Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Helen D. Davis
 	 
	 	 	Name:  	Helen D. Davis 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a

Lender

 	 
	 	By:  	/s/ Chi-Cheng Chen
 	 
	 	 	Name:  	Chi-Cheng Chen 	 
	 	 	Title:  	Authorized Signatory 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CITICORP USA, INC., as a Lender

 	 
	 	By:  	/s/ Amit Vasani
 	 
	 	 	Name:  	Amit Vasani 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BNP PARIBAS, as a Lender

 	 
	 	By:  	/s/ Denis O’Meara
 	 
	 	 	Name:  	Denis O’Meara 	 
	 	 	Title:  	Managing Director 	 
	 
	 	By:  	                      /s/ Andrew Platt
 	 
	 	 	Name:  	Andrew Platt 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK AG NEW YORK AND GRAND CAYMAN

BRANCHES, as a Lender

 
	 	By:  	/s/ Thomas Brady
 	 
	 	 	Name:  	Thomas Brady 	 
	 	 	Title:  	Managing Director 	 
	 
	 	By:  	                            /s/ Mark McGuigan
 	 
	 	 	Name:  	Mark McGuigan 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD., NEW 
YORK BRANCH, as
a Lender
	 
	 
	 	By:  	/s/ Raymond Ventura
 	 
	 	 	Name:  	Raymond Ventura 	 
	 	 	Title:  	Deputy General Manager 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND plc, as a Lender

 	 
	 	By:  	/s/ Andrew N. Taylor
 	 
	 	 	Name:  	Andrew N. Taylor 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Shawn Young
 	 
	 	 	Name:  	Shawn Young 	 
	 	 	Title:  	Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender

 	 
	 	By:  	                  /s/ Patrick N. Martin
 	 
	 	 	Name:  	Patrick N. Martin 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY, as a Lender

 	 
	 	By:  	/s/ Phillip McCaulay
 	 
	 	 	Name:  	Phillip McCaulay 	 
	 	 	Title:  	Second Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Helmut Vogel
 	 
	 	 	Name:  	Helmut Vogel 	 
	 	 	Title:  	Credit Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ James N. DeVries
 	 
	 	 	Name:  	James N. DeVries 	 
	 	 	Title:  	Senior Vice President

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