Document:

Confirmation of Forward Stock Sale Transaction

 Exhibit 10.2 
 

 
 February 22, 2007 
  

			
	 To:
	  	Vectren Corporation
		  	One Vectren Square
		  	Evansville, Indiana 47708
		
	From:	  	JPMorgan Chase Bank, National Association
		  	125 London Wall
		  	London EC2Y 5AJ
		  	England
		
	From:	  	 J.P. Morgan Securities Inc.,
 Solely as
Agent

		  	tel: (212) 622-5270
		  	fax: (212) 622-0105

 Dear Sirs, 
 The
purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between us on the Trade Date specified below (the “Transaction”). This Confirmation constitutes a
“Confirmation” as referred to in the ISDA Master Agreement specified below. 
  

	1.	The definitions and provisions contained in the 2000 ISDA Definitions (the “2000 Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the “2002
Definitions” and, together with the 2000 Definitions, the “Definitions”), each as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any inconsistency
between the 2002 Definitions and the 2000 Definitions, the 2002 Definitions will govern. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. 

 This Confirmation evidences a complete and binding agreement between Party A and Party B as to the terms of the Transaction to which this Confirmation
relates. This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if Party A and Party B had executed an agreement in such form on the Trade Date
(but without any Schedule except for the election of the laws of the State of New York as the governing law. In the event of any inconsistency between provisions of that Agreement and this Confirmation, this Confirmation will prevail for the purpose
of the Transaction to which this Confirmation relates. The parties hereby agree that no Transaction other than the Transaction to which this Confirmation relates shall be governed by the Agreement. For purposes of the 2002 Definitions, the
Transaction is a Share Forward Transaction. 
 JPMorgan Chase Bank, National Association 
 Organized under the laws of the United States as a National Banking Association. 
 Main Office 1111 Polaris Parkway, Columbus, Ohio 43271 
 Registered as a branch in
England & Wales branch No. BR000746. 
 Registered Branch Office 125 London Wall, London EC2Y 5AJ 
 Authorized and regulated by the Financial Services Authority 
  

 1 

 Party A and Party B each represents to the other that it has entered into this Transaction in reliance
upon such tax, accounting, regulatory, legal, and financial advice as it deems necessary and not upon any view expressed by the other. 
  

	2.	The terms of the particular Transaction to which this Confirmation relates are as follows: 

 General Terms: 
  

							
		
	 Party A:
	 	JPMorgan Chase Bank, National Association, London Branch
		
	 Party B:
	 	Vectren Corporation
		
	 Trade Date:
	 	February 22, 2007
		
	 Effective Date:
	 	February 28, 2007
		
	 Base Amount:
	 	Initially, 4,600,000 Shares; provided that the parties shall increase the Base Amount on any Date of Delivery (as defined in the Underwriting Agreement defined in Section 3
hereof) by the Option Securities (as defined in the Underwriting Agreement) purchased from Party A pursuant to Section 2(b) of the Underwriting Agreement. On each Settlement Date, the Base Amount shall be reduced by the number of Settlement Shares
for such Settlement Date.
		
	 Maturity Date:
	 	February 28, 2009 (or, if such date is not a Scheduled Trading Day, the next following Scheduled Trading Day).
		
	 Forward Price:
	 	 On the Effective Date, the Initial Forward Price, and on any other day, the Forward Price as of the immediately preceding calendar day
multiplied by the sum of (i) 1 and (ii) the Daily Rate for such day; provided that on each Forward Price Reduction Date, the Forward Price in effect on such date shall be the Forward Price otherwise in effect on such date minus the
Forward Price Reduction Amount for such Forward Price Reduction Date; provided further that if the Underwriters (as such term is defined in the Underwriting Agreement) purchase any Option Securities from the Forward Seller pursuant to Section
2(b) of the Underwriting Agreement, on such Date of Delivery, the Forward Price on such date shall be the result of the following formula:
  
 

  
 where:
  

		 	 BA’    
	 	=	 	the Base Amount prior to increase thereof as described opposite the caption “Base Amount” above;
		 	 FP       
	 	=	 	the Forward Price on the date immediately preceding such Date of Delivery;
		 	 DR     
	 	=	 	the Daily Rate for such day;

  

 2 

							
		 	OS	 	 =
	 	the number of Option Securities so purchased from the Forward Seller;
	 	 	 IFP
	 	 =
	 	the Initial Forward Price (subject to reduction by the Forward Price Reduction amount on
any Forward Price Reduction Date occurring on or prior to such Date of Delivery);
	 	 	 BA”
	 	 =
	 	the Base Amount after increase thereof as described above opposite the caption “Base
Amount” above.
	 	 	 
	 	 	 
		
	 Initial Forward Price:
	 	USD $27.34 per Share.
		
	 Daily Rate:
	 	For any day, (i)(A) USD-Federal Funds Rate for such day minus (B) the Spread divided by (ii) 365.
		
	 USD-Federal Funds Rate
	 	For any day, the rate set forth for such day opposite the caption “Federal funds”, as such rate is displayed on the page “FedsOpen <Index> <GO>“ on
the BLOOMBERG Professional Service, or any successor page; provided that if no rate appears for any day on such page, the rate for the immediately preceding day for which a rate appears shall be used for such day.
		
	 Spread:
	 	0.35%
		
	 Forward Price Reduction Date:
	 	May 11, 2007, August 13, 2007, November 13, 2007, February 13, 2008, May 13, 2008, August 13, 2008, November 12, 2008 and February 11, 2009.
		
	 Forward Price Reduction Amount:
	 	For each Forward Price Reduction Date, the Forward Price Reduction Amount set forth opposite such date on Schedule I.
		
	 Shares:
	 	Common Stock, without par value, of Party B (also referred to herein as the “Issuer”) (Exchange identifier: “VVC”).
		
	 Exchange:
	 	The New York Stock Exchange.
		
	 Related Exchange(s):
	 	All Exchanges.
		
	 Clearance System:
	 	DTC.
		
	 Calculation Agent:
	 	JPMorgan Chase Bank, National Association.
		
	Settlement Terms:	 	
		
	 Settlement Date:
	 	Any Scheduled Trading Day following the Effective Date and up to and including the Maturity Date, as designated by (a) Party A pursuant to “Termination Settlement” below or
(b) Party B in a written notice (a “Settlement Notice”) that satisfies the Settlement Notice Requirements and is delivered to Party A at least (i) three Scheduled Trading Days prior to such Settlement Date, which may be the Maturity Date,
if Physical Settlement applies, and (ii) 130 Scheduled Trading Days prior to such Settlement Date, which may be the Maturity

  

 3 

			
	 	  	Date, if Cash Settlement applies; provided that (i) the Maturity Date shall be a Settlement
Date if on such date the Base Amount is greater than zero and (ii) if Cash Settlement
applies
and Party A shall have fully unwound its hedge during an Unwind Period by a date that is
more than three Scheduled Trading Days prior to a Settlement Date specified above, Party A
may, by written notice to Party B, specify any
Scheduled Trading Day prior to such originally
specified Settlement Date as the Settlement Date.
		
	 Settlement Shares:
	  	With respect to any Settlement Date, a number of Shares, not to exceed the Base Amount, designated as such by Party B in the related Settlement Notice or by Party A pursuant to
“Termination Settlement” below; provided that on the Maturity Date the number of Settlement Shares shall be equal to the Base Amount on such date.
		
	 Settlement:
	  	Physical Settlement or Cash Settlement, at the election of Party B as set forth in a Settlement Notice that satisfies the Settlement Notice Requirements; provided that Physical
Settlement shall apply (i) if no Settlement Method is validly selected, (ii) with respect to any Settlement Shares in respect of which Party A is unable, in its judgment, to unwind its hedge by the end of the Unwind Period in a manner that, in the
judgment of Party A, is consistent with the requirements for qualifying for the safe harbor provided by Rule 10b-18 under the Exchange Act or due to the lack of sufficient liquidity in the Shares on any Exchange Business Day during the Unwind Period
or (iii) to any Termination Settlement Date (as defined below under “Termination Settlement”).
		
	 Settlement Notice Requirements:
	  	Notwithstanding any other provision hereof, a Settlement Notice delivered by Party B that specifies Cash Settlement will not be effective to establish a Settlement Date or require Cash
Settlement unless Party B delivers to Party A with such Settlement Notice a representation signed by Party B substantially in the following form: “As of the date of this Settlement Notice, Party B is not aware of any material nonpublic
information concerning itself or the Shares, and is designating the date contained herein as a Settlement Date in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.”
		
	 Unwind Period:
	  	Each Exchange Business Day that is not a Suspension Day during the period from and including the first Exchange Business Day following the date Party B validly elects Cash Settlement in
respect of a Settlement Date through the third Scheduled Trading Day preceding such Settlement Date (or the immediately preceding Exchange Business Day if such Scheduled Trading Day is not an Exchange Business Day); subject to “Termination
Settlement” below. If any Exchange Business Day during an Unwind Period is a Disrupted Day, the Calculation Agent shall make commercially reasonable

  

 4 

			
	 	  	adjustments to the terms of the Transaction (including, without limitation, the Cash
Settlement Amount and the 10b-18 VWAP) to account for the occurrence of such
Disrupted
Day.
		
	 Suspension Day:
	  	Any Exchange Business Day on which Party A determines based on the advice of counsel that Cash Settlement may violate applicable securities laws. Party A shall notify Party B if it receives such
advice from its counsel.
		
	 Market Disruption Event:
	  	Section 6.3(a)(ii) of the 2002 Definitions is hereby amended by replacing clause (ii) in its entirety with “(ii) an Exchange Disruption, or” and inserting immediately following clause
(iii) the phrase “; in each case that the Calculation Agent determines is material.”
		
	 Exchange Act:
	  	The Securities Exchange Act of 1934, as amended from time to time.
		
	 Physical Settlement:
	  	On any Settlement Date in respect of which Physical Settlement applies, Party B shall deliver to Party A through the Clearance System the Settlement Shares for such Settlement Date, and Party A
shall deliver to Party B, by wire transfer of immediately available funds to an account designated by Party B, an amount in cash equal to the Physical Settlement Amount for such Settlement Date, on a delivery versus payment basis.
		
	 Physical Settlement Amount:
	  	For any Settlement Date in respect of which Physical Settlement applies, an amount in cash equal to the product of (i) the Forward Price on such Settlement Date and (ii) the number of Settlement
Shares for such Settlement Date.
		
	 Cash Settlement:
	  	On any Settlement Date in respect of which Cash Settlement applies, if the Cash Settlement Amount for such Settlement Date is a positive number, Party A will pay such Cash Settlement Amount to
Party B. If the Cash Settlement Amount is a negative number, Party B will pay the absolute value of such Cash Settlement Amount to Party A. Such amounts shall be paid on the Settlement Date.
		
	 Cash Settlement Amount:
	  	For any Settlement Date in respect of which Cash Settlement applies, an amount determined by the Calculation Agent equal to the difference between (1) the product of (i) (A) the Forward Price on
the first day of the applicable Unwind Period minus (B) the average of the 10b-18 VWAP prices per Share on each Exchange Business Day during such Unwind Period, multiplied by (ii) the number of Settlement Shares for such Settlement
Date, minus (2) the product of (i) the Forward Price Reduction Amount for any Forward Price Reduction Date that occurs during such Unwind Period multiplied by (ii) the number of Settlement Shares with respect to which Party A has not
unwound its hedge as of such Forward Price Reduction Date.

  

 5 

			
	 10b-18 VWAP:
	  	For any Exchange Business Day during the Unwind Period which is not a Suspension Day, the volume-weighted average price at which the Shares trade as reported in the composite transactions for
the Exchange on such Exchange Business Day, excluding (i) trades that do not settle regular way, (ii) opening (regular way) reported trades on the Exchange on such Exchange Business Day, (iii) trades that occur in the last ten minutes before the
scheduled close of trading on the Exchange on such Exchange Business Day and ten minutes before the scheduled close of the primary trading session in the market where the trade is effected, and (iv) trades on such Exchange Business Day that do not
satisfy the requirements of Rule 10b-18(b)(3), as determined in good faith by the Calculation Agent. Party B acknowledges that Party A may refer to the Bloomberg Page “VVC <Equity> AQR SEC” (or any successor thereto), in its
discretion, for such Exchange Business Day to determine the 10b-18 VWAP.
		
	 Settlement Currency:
	  	USD.
		
	 Failure to Deliver:
	  	Inapplicable.
		
	Adjustments:	  	
		
	 Method of Adjustment:
	  	Calculation Agent Adjustment; notwithstanding anything in the 2002 Definitions to the contrary, the Calculation Agent may make an adjustment pursuant to Calculation Agent Adjustment to any one
or more of the Base Amount, the Forward Price and any other variable relevant to the settlement or payment terms of the Transaction.
		
	 Additional Adjustment:
	  	If, in Party A’s sole judgment, the actual cost to Party A, over any one month period, of borrowing a number of Shares equal to the Base Amount to hedge its exposure to the Transaction
exceeds a weighted average rate equal to 35 basis points per annum, the Calculation Agent shall reduce the Forward Price in order to compensate Party A for the amount by which such cost exceeded a weighted average rate equal to 35 basis points per
annum during such period. The Calculation Agent shall notify Party B prior to making any such adjustment to the Forward Price and, upon the request of Party B, Party A shall provide an itemized list of its stock loan costs for the applicable one
month period.
		
	Account Details:	  	
		
	 Payments to Party A:
	  	To be advised under separate cover or telephone confirmed prior to each Settlement Date.
		
	 Payments to Party B:
	  	To be advised under separate cover or telephone confirmed prior to each Settlement Date.
		
	 Delivery of Shares to Party A:
	  	To be advised.

  

 6 

			
		
	 Delivery of Shares to Party B:
	  	To be advised.

  

	3.	Other Provisions: 

 Conditions to Effectiveness:

 The effectiveness of this Confirmation on the Effective Date shall be subject to (i) the condition that the representations and
warranties of Party B contained in the Purchase Agreement dated the date hereof among Party B and J.P. Morgan Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Representatives of the Several Underwriters (the
“Underwriting Agreement”) and any certificate delivered pursuant thereto by Party B are true and correct on the Effective Date as if made as of the Effective Date, (ii) the condition that Party B have performed all of the obligations
required to be performed by it under the Underwriting Agreement on or prior to the Effective Date, (iii) the satisfaction of all of the conditions set forth in Section 5 of the Underwriting Agreement and (iv) the condition that
neither of the following has occurred (A) Party A is unable to borrow and deliver for sale a number of Shares equal to the Base Amount, or (B) in Party A’s sole judgment either it is impracticable to do so or Party A would incur a
stock loan cost of more than a rate equal to 35 basis points per annum to do so (in which event this Confirmation shall be effective but the Base Amount for this Transaction shall be the number of Shares Party A is required to deliver in accordance
with Section 2(a) of the Underwriting Agreement). 
 Representations and Agreements of Party B: 
 Party B (i) has such knowledge and experience in financial and business affairs as to be capable of evaluating the merits and risks of entering into
this Transaction; (ii) has consulted with its own legal, financial, accounting and tax advisors in connection with this Transaction; and (iii) is entering into this Transaction for a bona fide business purpose. 
 Party B is not and has not been the subject of any civil proceeding of a judicial or administrative body of competent jurisdiction that could reasonably
be expected to impair materially Party B’s ability to perform its obligations hereunder. 
 Party B will by the next succeeding New York
Business Day notify Party A upon obtaining knowledge of the occurrence of any event that would constitute an Event of Default, a Potential Event of Default or a Potential Adjustment Event. 
 Additional Representations, Warranties and Agreements of Party B: Party B hereby represents and warrants to, and agrees with, Party A as of the
date hereof that: 
  

	 	(a)	Any Shares, when issued and delivered in accordance with the terms of the Transaction, will be duly authorized and validly issued, fully paid and nonassessable, and the issuance
thereof will not be subject to any preemptive or similar rights. 

  

	 	(b)	Party B has reserved and will keep available at all times, free from preemptive rights, out of its authorized but unissued Shares, solely for the purpose of issuance upon settlement
of the Transaction as herein provided, the full number of Shares as shall be issuable at such time upon settlement of the Transaction. All Shares so issuable shall, upon such issuance, be accepted for listing or quotation on the Exchange.

  

	 	(c)	 Party B agrees to provide Party A at least 30 days’ written notice (an “Issuer Repurchase Notice”) prior to executing any repurchase of Shares by
Party B or any of its subsidiaries (or entering into any contract that would require, or give the option to, Party B or any of its subsidiaries, to purchase or repurchase Shares), whether out of profits or capital or whether the consideration for
such repurchase is cash, securities or otherwise (an “Issuer Repurchase”), that 

  

 7 

	 	 
alone or in the aggregate would result in the Base Amount Percentage (as defined below) being (i) equal to or greater than 7.5% of the outstanding
Shares and (ii) greater by 0.5% or more than the Base Amount Percentage at the time of the immediately preceding Issuer Repurchase Notice (or in the case of the first such Issuer Repurchase Notice, greater than the Base Amount Percentage as of
the later of the date hereof or the immediately preceding Settlement Date, if any). The “Base Amount Percentage” as of any day is the fraction (1) the numerator of which is the Base Amount and (2) the denominator of which is the
number of Shares outstanding on such day. 

  

	 	(d)	No filing with, or approval, authorization, consent, license registration, qualification, order or decree of, any court or governmental authority or agency, domestic or foreign, is
necessary or required for the execution, delivery and performance by Party B of this Confirmation and the consummation of the Transaction (including, without limitation, the issuance and delivery of Shares on any Settlement Date) except
(i) such as have been obtained under the Securities Act of 1933, as amended (the “Securities Act”), and (ii) as may be required to be obtained under state securities laws. 

  

	 	(e)	Party B agrees not to make any Issuer Repurchase if, immediately following such Issuer Repurchase, the Base Amount Percentage would be equal to or greater than 8.0%.

  

	 	(f)	Party B is not insolvent, nor will Party B be rendered insolvent as a result of this Transaction. 

  

	 	(g)	Neither Party B nor any of its affiliates shall take or refrain from taking any action (including, without limitation, any direct purchases by Party B or any of its affiliates or
any purchases by a party to a derivative transaction with Party B or any of its affiliates), either under this Confirmation, under an agreement with another party or otherwise, that might cause any purchases of Shares by Party A or any of its
affiliates in connection with any Cash Settlement of this Transaction not to meet the requirements of the safe harbor provided by Rule 10b-18 under the Exchange Act if such purchases were made by Party B. 

  

	 	(h)	Party B will not engage in any “distribution” (as defined in Regulation M under the Exchange Act (“Regulation M”)) that would cause a “restricted
period” (as defined in Regulation M) to occur during any Unwind Period. 

  

	 	(i)	Party B is an “eligible contract participant” (as such term is defined in Section 1a(12) of the Commodity Exchange Act, as amended). 

  

	 	(j)	In addition to any other requirements set forth herein, Party B agrees not to elect Cash Settlement if, in the reasonable judgment of either Party A or Party B, such settlement or
Party A’s related market activity would result in a violation of the U.S. federal securities laws or any other federal or state law or regulation applicable to Party B. 

 Covenant of Party B: 
 The parties
acknowledge and agree that any Shares delivered by Party B to Party A on any Settlement Date will be newly issued Shares and when delivered by Party A (or an affiliate of Party A) to securities lenders from whom Party A (or an affiliate of Party A)
borrowed Shares in connection with hedging its exposure to the Transaction will be freely saleable without further registration or other restrictions under the Securities Act, in the hands of those securities lenders, irrespective of whether such
stock loan is effected by Party A or an affiliate of Party A. Accordingly, Party B agrees that the Shares that it delivers to Party A on each Settlement Date will not bear a restrictive legend and that such Shares will be deposited in, and the
delivery thereof shall be effected through the facilities of, the Clearance System. 
  

 8 

 Covenants of Party A: 
  

	 	(a)	Unless the provisions set forth below under “Private Placement Procedures” shall be applicable, Party A shall use any Shares delivered by Party B to Party A on any
Settlement Date to return to securities lenders to close out open Share loans created by Party A or an affiliate of Party A in the course of Party A’s or such affiliate’s hedging activities related to Party A’s exposure under this
Confirmation. 

  

	 	(b)	In connection with bids and purchases of Shares in connection with any Cash Settlement of this Transaction, Party A shall use its commercially reasonable efforts to conduct its
activities, or cause its affiliates to conduct their activities, in a manner consistent with the requirements of the safe harbor provided by Rule 10b-18 under the Exchange Act, as if such provisions were applicable to such purchases.

 Insolvency Filing: 
 Notwithstanding anything to the contrary herein, in the Agreement or in the Definitions, upon any Insolvency Filing in respect of the Issuer, the Transaction shall automatically terminate on the date thereof without
further liability of either party to this Confirmation to the other party (except for any liability in respect of any breach of representation or covenant by a party under this Confirmation prior to the date of such Insolvency Filing). 

Extraordinary Dividends: 
 If an
ex-dividend date for an Extraordinary Dividend occurs on or after the Trade Date and on or prior to the Maturity Date, Party B shall pay an amount, as determined by the Calculation Agent, in cash equal to the product of such Extraordinary Dividend
and the Base Amount to Party A on the earlier of (i) the date on which such Extraordinary Dividend is paid by the Issuer to holders of record of the Shares or (ii) the Maturity Date. “Extraordinary Dividend” means the per Share
amount of any cash dividend or distribution declared by the Issuer with respect to the Shares that is specified by the board of directors of the Issuer as an “extraordinary” dividend. 
 Acceleration Events: 
 The following
events shall each constitute an “Acceleration Event”: 
  

	 	(a)	Stock Borrow Events. In the sole judgment of Party A (i) Party A is unable to hedge Party A’s exposure to the Transaction because (A) of the lack of sufficient
Shares being made available for Share borrowing by lenders, or (B) it is otherwise commercially impracticable (a “Stock Borrow Event”); 

  

	 	(b)	Dividends and Other Distributions. On any day occurring after the Trade Date Party B declares a distribution, issue or dividend to existing holders of the Shares of
(i) any cash dividend (other than an Extraordinary Dividend) to the extent all cash dividends having an ex-dividend date during the period from and including any Forward Price Reduction Date (with each of the Trade Date and the Maturity Date
being a Forward Price Reduction Date for purposes of this clause (b) only) to but excluding the next subsequent Forward Price Reduction Date exceeds, on a per Share basis, the Forward Price Reduction Amount set forth opposite the first date of
any such period on Schedule I or (ii) share capital or securities of another issuer acquired or owned (directly or indirectly) by Party B as a result of a spin-off or other similar transaction or (iii) any other type of securities (other
than Shares), rights or warrants or other assets, for payment (cash or other consideration) at less than the prevailing market price as determined by Party A; 

  

 9 

	 	(c)	ISDA Early Termination Date. Either Party A or Party B has the right to designate an Early Termination Date pursuant to Section 6 of the Agreement;

  

	 	(d)	Other ISDA Events. The announcement of any event that if consummated, would result in an Extraordinary Event, or the occurrence of any Change in Law or Delisting;
provided that in case of a Delisting, in addition to the provisions of Section 12.6(a)(iii) of the 2002 Definitions, it will also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately
re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or their respective successors); and provided further that the definition of
“Change in Law” provided in Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “or public announcement of the
formal or informal interpretation” and (ii) immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by Party A on the Trade Date”; or

  

	 	(e)	Issuer Repurchases. Party B publicly announces or discloses any Issuer Repurchase (whether or not subsequently amended) that alone, or in the aggregate, results in, or could
result in, the Base Amount representing more than 8.0% of the total outstanding Shares (assuming the consummation of such proposed Issuer Repurchase). 

 Termination Settlement: 
 Upon the occurrence of any Acceleration Event, Party A shall have the right
to designate, upon at least one Scheduled Trading Day’s notice, any Scheduled Trading Day following such occurrence to be a Settlement Date hereunder (a “Termination Settlement Date”) to which Physical Settlement shall apply, and to
select the number of Settlement Shares relating to such Termination Settlement Date; provided that in the case of an Acceleration Event arising out of a Stock Borrow Event the number of Settlement Shares so designated by Party A shall not
exceed the number of Shares as to which such Stock Borrow Event exists; provided further that in the case of the announcement of an event that if consummated would result in a Merger Event, Party A shall not have the right to designate a
Termination Settlement Date until on or after the date three months prior to the earliest anticipated Merger Date, as determined by the Calculation Agent in its commercially reasonable judgment, for such Acceleration Event. If, upon designation of a
Termination Settlement Date by Party A pursuant to the preceding sentence, Party B fails to deliver the Settlement Shares relating to such Termination Settlement Date when due or otherwise fails to perform obligations within its control in respect
of this Transaction, it shall be an Event of Default with respect to Party B and Section 6 of the Agreement shall apply. If an Acceleration Event occurs during an Unwind Period relating to a number of Settlement Shares to which Cash
Settlement applies, then on the Termination Settlement Date relating to such Acceleration Event, notwithstanding any election to the contrary by Party B, Cash Settlement shall apply to the portion of the Settlement Shares relating to such Unwind
Period as to which Party A has unwound its hedge and Physical Settlement shall apply in respect of (x) the remainder (if any) of such Settlement Shares and (y) the Settlement Shares designated by Party A in respect of such Termination
Settlement Date. 
 Private Placement Procedures 
 If Party B is unable to comply with the provisions of “Covenant of Party B” above because of a change in law or a change in the policy of the Securities and Exchange Commission or its staff, or Party A
otherwise determines that in its reasonable opinion any Settlement Shares to be delivered to Party A by Party B may not be freely returned by Party A or its affiliates to securities lenders as described under “Covenant of Party B” above,
then delivery of any such Settlement Shares (the “Restricted Shares”) shall be effected pursuant to Annex A hereto, unless waived by Party A. 
  

 10 

 Rule 10b5-1: 
 It is the intent of Party A and Party B that following any election of Cash Settlement by Party B, the purchase of Shares by Party A during any Unwind Period comply with the requirements of Rule 10b5-1(c)(1)(i)(B) of
the Exchange Act and that this Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c). 
 Party B acknowledges
that (i) during any Unwind Period Party B does not have, and shall not attempt to exercise, any influence over how, when or whether to effect purchases of Shares by Party A (or its agent or affiliate) in connection with this Confirmation and
(ii) Party B is entering into the Agreement and this Confirmation in good faith and not as part of a plan or scheme to evade compliance with federal securities laws including, without limitation, Rule 10b-5 promulgated under the Exchange Act.

 Party B hereby agrees with Party A that during any Unwind Period Party B shall not communicate, directly or indirectly, any Material
Non-Public Information (as defined herein) to any EDG Personnel (as defined below). For purposes of this Transaction, “Material Non-Public Information” means information relating to Party B or the Shares that (a) has not been widely
disseminated by wire service, in one or more newspapers of general circulation, by communication from Party B to its shareholders or in a press release, or contained in a public filing made by Party B with the Securities and Exchange Commission and
(b) a reasonable investor might consider to be of importance in making an investment decision to buy, sell or hold Shares. For the avoidance of doubt and solely by way of illustration, information should be presumed “material” if it
relates to such matters as dividend increases or decreases, earnings estimates, changes in previously released earnings estimates, significant expansion or curtailment of operations, a significant increase or decline of orders, significant merger or
acquisition proposals or agreements, significant new products or discoveries, extraordinary borrowing, major litigation, liquidity problems, extraordinary management developments, purchase or sale of substantial assets, or other similar information
For purposes of this Transaction, “EDG Personnel” means any employee on the trading side of the Equity Derivatives Group of J.P. Morgan Securities, Inc. and does not include Messrs. David Aidelson, Santosh Nabar, James Rothschild, Elliot
Chalom and Ms. Bernadette Barnard (or any other person or persons designated from time to time by the Compliance Group of Party). 
 Maximum Share Delivery: 
 Notwithstanding any other provision of this Confirmation, in no event will Party B be required to
deliver on any Settlement Date, whether pursuant to Physical Settlement, Termination Settlement or any Private Placement Settlement, more than 10,580,000 Shares to Party A, subject to reduction by the amount of any Shares delivered by Party B on any
prior Settlement Date. 
 Assignment: 
 Party A may assign or transfer any of its rights or delegate any of its duties hereunder to any affiliate of Party A or any entity organized or sponsored by Party A without the prior written consent of Party B.
Notwithstanding any other provision of this Confirmation to the contrary requiring or allowing Party A to purchase or receive any Shares from Party B, Party A may designate any of its affiliates to purchase or receive such Shares or otherwise to
perform Party A’s obligations in respect of this Transaction and any such designee may assume such obligations, and Party A shall be discharged of its obligations to Party B solely to the extent of any such performance. 
  

 11 

 Matters Relating to Agent: 
 Each party agrees and acknowledges that (i) J.P. Morgan Securities Inc., as agent, (the “Agent”) acts solely as agent on a disclosed basis
with respect to the transactions contemplated hereunder, and (ii) the Agent has no obligation, by guaranty, endorsement or otherwise, with respect to the obligations of either Party B or Party A hereunder, either with respect to the delivery of
cash or Shares, either at the beginning or the end of the transactions contemplated hereby. In this regard, each of Party A and Party B acknowledges and agrees to look solely to the other for performance hereunder, and not to the Agent. 

Indemnity 
 Party B agrees to
indemnify and hold harmless Party A, its affiliates, their respective directors, officers, agents and controlling parties (Party A and each such affiliate or person being an “Indemnified Party”) against any third-party losses, claims,
damages, liabilities (whether direct or indirect, in contract, tort or otherwise) or expenses, joint or several, to which any Indemnified Party may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or
regulation, at common law or otherwise, insofar as such third-party losses, claims, damages, liabilities or expenses (or actions, claims, investigations or proceedings in respect thereof, whether commenced or threatened) (i) arise out of or
relate to (A) actions or failures to act by Party B or (B) actions or failures to act by an Indemnified Party with the consent or upon the direction of Party B or (ii) otherwise arise out of or relate to the Transaction or any related
transactions, provided that this clause (ii) shall not apply to the extent, but only to the extent, that any losses, claims, damages, liabilities or expenses of an Indemnified Party have resulted primarily from the gross negligence or willful
misconduct of such Indemnified Party. Party B agrees to reimburse promptly each such Indemnified Party for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damages,
liability, expense or action. 
 Notice 
  

			
	 Non-Reliance:
	  	Applicable
		
	 Additional Acknowledgments:
	  	Applicable
		
	 Agreements and Acknowledgments
 Regarding Hedging Activities:
	  	Applicable

  

	4.	The Agreement is further supplemented by the following provisions: 

 No Collateral or Setoff.: 
 Notwithstanding Section 6(f) or any other provision of the Agreement or any other agreement
between the parties to the contrary, the obligations of Party B hereunder are not secured by any collateral. Obligations under this Transaction shall not be set off against any other obligations of the parties, whether arising under the Agreement,
this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and no other obligations of the parties shall be set off against obligations under this Transaction, whether arising under the Agreement, this
Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such right of setoff. In calculating any amounts under Section 6(e) of the Agreement, notwithstanding
anything to the contrary in the Agreement, (a) separate amounts shall be calculated as set forth in such Section 6(e) with respect to (i) this Transaction and (ii) all other Transactions, and (b) such separate amounts shall
be payable pursuant to Section 6(d)(ii) of the Agreement. 
  

 12 

 Status of Claims in Bankruptcy: 
 Party A acknowledges and agrees that this confirmation is not intended to convey to Party A rights with respect to the transactions contemplated hereby
that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings of Party B; provided, however, that nothing herein shall limit or shall be deemed to limit Party A’s right to pursue remedies in the event of a
breach by Party B of its obligations and agreements with respect to this Confirmation and the Agreement; and provided further, that nothing herein shall limit or shall be deemed to limit Party A’s rights in respect of any transaction
other than the Transaction. 
 Limit on Beneficial Ownership: 
 Notwithstanding any other provisions hereof, Party A shall not be entitled to receive Shares hereunder (whether in connection with the purchase of Shares
on any Settlement Date or any Termination Settlement Date, any Private Placement Settlement or otherwise) to the extent (but only to the extent) that after such receipt (a) Party A’s ultimate parent entity would, directly or indirectly,
beneficially own (as such term is defined for purposes of Section 13(d) of the Exchange Act) in excess of 8.0% of the outstanding Shares or (b) Party A’s ultimate parent entity would purchase, acquire or take (as such terms are used
in the Federal Power Act) at any time on the relevant date in excess of 8.0% of the outstanding Shares. Any purported delivery of Shares by Party B hereunder shall be void and have no effect to the extent (but only to the extent) that after receipt
of such Shares by Party A, Party A’s ultimate parent entity would, directly or indirectly, individually or in the aggregate, so beneficially own, or purchase, acquire or take, as applicable, in excess of 8.0% of the outstanding Shares. If, on
any day, any delivery of Shares by Party B is not effected, in whole or in part, as a result of this provision, Party B’s obligation to make such delivery shall not be extinguished, and Party B shall make such delivery as promptly as
practicable after, but in no event within one Exchange Business Day after, Party A gives notice to Party B that after receipt of such delivery, Party A’s ultimate parent entity would not, directly or indirectly, individually or in the
aggregate, beneficially own, or purchase, acquire or take, as applicable, in excess of 8.0% of the outstanding Shares. 
 Miscellaneous: 
  

	 	(a)	Addresses for Notices. For the purpose of Section 12(a) of the Agreement: 

 Address for notices or communications to Party A: 
  

			
	  
 Address:
	  	JPMorgan Chase Bank, National Association
		  	277 Park Avenue
		  	9th Floor
		  	New York, NY 10172
	 Attention:
	  	Equity Derivatives Group
	 Telephone No.:
	  	(212) 622-5270
	 Facsimile No.:
	  	(212) 622-0105
	
	 With a copy to:

		
	 Address:
	  	JPMorgan Chase Bank, National Association
		  	277 Park Avenue
		  	11th Floor
		  	New York, NY 10172
	 Attention:
	  	Equity Derivatives Group – Marketing Support
	 Telephone No.:
	  	(212) 622-6707

  

 13 

			
	 Facsimile No.:
	  	(212) 622-8534

 Address for notices or communications to Party B: 
  

			
	 Address:
	  	Vectren Corporation
		  	One Vectren Square
		  	Evansville, Indiana 47708
	 Attention:
	  	General Counsel

  

	 	(b)	Waiver of Right to Trial by Jury. Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or
proceeding relating to this Confirmation. Each party (i) certifies that no representative, agent or attorney of the other party has represented, expressly or otherwise, that such other party would not, in the event of such a suit action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter into this Confirmation by, among other things, the mutual waivers and certifications herein. 

 

	 	(c)	London Branch. Party A is entering into this Confirmation and the Agreement through its London branch. Notwithstanding the foregoing, Party A represents to Party B that the
obligations of Party A are the same as if it had entered into this Confirmation and the Agreement through its head or home office in New York. 

 Acknowledgements. 
 The parties hereto intend for: 
  

	 	(a)	this Transaction to be a “securities contract” as defined in Section 741(7) of Title 11 of the United States Code (the “Bankruptcy Code”), qualifying for
the protections under Section 555 of the Bankruptcy Code; 

  

	 	(b)	a party’s right to liquidate this Transaction and to exercise any other remedies upon the occurrence of any Event of Default under the Agreement with respect to the other party
to constitute a “contractual right” as defined in the Bankruptcy Code; 

  

	 	(c)	Party A to be a “financial institution” within the meaning of Section 101(22) of the Bankruptcy Code; and 

  

	 	(d)	all payments for, under or in connection with this Transaction, all payments for the Shares and the transfer of such Shares to constitute “settlement payments” as defined
in the Bankruptcy Code. 

 Severability. 
 If any term, provision, covenant or condition of this Confirmation, or the application thereof to any party or circumstance, shall be held to be invalid or unenforceable in whole or in part for any reason, the
remaining terms, provisions, covenants, and conditions hereof shall continue in full force and effect as if this Confirmation had been executed with the invalid or unenforceable provision eliminated, so long as this Confirmation as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter of this Confirmation and the deletion of such portion of this Confirmation will not substantially impair the respective benefits or
expectations of parties to this Agreement; provided, however, that this severability provision shall not be applicable if any provision of Section 2, 5, 6 or 13 of the Agreement (or any 

  

 14 

 
definition or provision in Section 14 to the extent that it relates to, or is used in or in connection with any such Section) shall be so held to be
invalid or unenforceable. 
 [Remainder of page intentionally left blank] 
  

 15 

 Please confirm that the foregoing correctly sets forth the terms of our agreement by signing and returning this
Confirmation. 
  

					
	Yours faithfully,	 	 
		
	 J.P. MORGAN SECURITIES INC.,
 as
agent for JPMorgan Chase Bank, National Association
	 	
			
	By:	 	 /s/ Sudheer Tegulapalle
	 	
	Name:	 	Sudheer Tegulapalle	 	
	Title:	 	Executive Director	 	

 Confirmed as of the date first written above: 
  

					
	VECTREN CORPORATION	 	 
			
	 By:
	 	 /s/ Robert L. Goocher
	 	
	 Name:
	 	Robert L. Goocher	 	
	 Title:
	 	Vice President and Treasurer	 	

 JPMorgan Chase Bank, National Association 
 Organized under the laws of the United States as a National Banking Association. 
 Main
Office 1111 Polaris Parkway, Columbus, Ohio 43271 
 Registered as a branch in England & Wales branch No. BR000746. 
 Registered Branch Office 125 London Wall, London EC2Y 5AJ 
 Authorized and regulated by the Financial Services Authority 

 ANNEX A 
 PRIVATE PLACEMENT PROCEDURES 
  

	(i)	If Party B delivers the Restricted Shares pursuant to this clause (i) (a “Private Placement Settlement”), then delivery of Restricted Shares by Party B shall be
effected in customary private placement procedures with respect to such Restricted Shares reasonably acceptable to Party A; provided that if, on or before the date that a Private Placement Settlement would occur, Party B has taken, or caused
to be taken, any action that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Party B to Party A (or any affiliate designated by Party A) of the Restricted Shares or the exemption
pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Restricted Shares by Party A (or any such affiliate of Party A) or Party B fails to deliver the Restricted Shares when due or otherwise fails to perform
obligations within its control in respect of a Private Placement Settlement, it shall be an Event of Default with respect to Party B and Section 6 of the Agreement shall apply. The Private Placement Settlement of such Restricted Shares shall
include customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Party A, due diligence rights (for Party A or any designated buyer of the Restricted Shares by Party A), opinions and
certificates, and such other documentation as is customary for private placement agreements, all reasonably acceptable to Party A. In the case of a Private Placement Settlement, Party A shall, in its good faith discretion, adjust the amount of
Restricted Shares to be delivered to Party A hereunder in a commercially reasonable manner to reflect the fact that such Restricted Shares may not be freely returned to securities lenders by Party A and may only be saleable by Party A at a discount
to reflect the lack of liquidity in Restricted Shares. Notwithstanding the Agreement or this Confirmation, the date of delivery of such Restricted Shares shall be the Clearance System Business Day following notice by Party A to Party B of the number
of Restricted Shares to be delivered pursuant to this clause (i). For the avoidance of doubt, delivery of Restricted Shares shall be due as set forth in the previous sentence and not be due on the Settlement Date or Termination Settlement Date that
would otherwise be applicable. 

  

	(ii)	If Party B delivers any Restricted Shares in respect of the Transaction, Party B agrees that (i) such Shares may be transferred by and among JPMorgan Chase Bank, National
Association and its affiliates and (ii) after the minimum “holding period” within the meaning of Rule 144(d) under the Securities Act has elapsed after the applicable Settlement Date, Party B shall promptly remove, or cause the
transfer agent for the Shares to remove, any legends referring to any transfer restrictions from such Shares upon delivery by Party A (or such affiliate of Party A) to Party B or such transfer agent of seller’s and broker’s representation
letters customarily delivered by Party A or its affiliates in connection with resales of restricted securities pursuant to Rule 144 under the Securities Act, each without any further requirement for the delivery of any certificate, consent,
agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Party A (or such affiliate of Party A). 

  

 A-1Form of Restricted Share Award Agreement

 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 2003 EQUITY INCENTIVE PLAN 
 RESTRICTED SHARE AWARD AGREEMENT 
 [Model for Named Executive Officers] 
 This RESTRICTED SHARE AWARD AGREEMENT (the “Award Agreement”), dated as of the      day of
                     , 200     (the “Award Date”), is between Pennsylvania Real Estate Investment Trust,
a Pennsylvania business trust (the “Trust”), and                          (the “Grantee”), a “Key
Employee,” as defined in the Pennsylvania Real Estate Investment Trust 2003 Equity Incentive Plan (the “Plan”). 
 WHEREAS,
the Trust desires to award the Grantee shares of beneficial interest in the Trust (“Shares”) subject to certain restrictions as hereinafter provided, in accordance with the provisions of the Plan, a copy of which is attached hereto (if not
previously provided to the Grantee); 
 NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and
valuable consideration, the legal sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 
 1. Award of Restricted Shares. The Trust hereby awards to the Grantee as of the Award Date _____ Shares subject to the restrictions set forth in Paragraph 2 (“Restricted Shares”). This grant is in all
respects limited and conditioned as hereinafter provided, and is subject in all respects to the terms and conditions of the Plan now in effect and as it may be amended from time to time (but only to the extent that such amendments apply to
outstanding grants of Restricted Shares). Such terms and conditions are incorporated herein by reference, made a part hereof, and shall control in the event of any conflict with any other terms of this Award Agreement. 
 2. Vesting. The grantee shall vest in (i.e., have the right to sell, assign, transfer, pledge, or otherwise encumber or dispose of) the
Restricted Shares granted under the Award Agreement as indicated in the schedule below. The “Committee” (as defined in the Plan) may at any time accelerate the time at which the restrictions on all or any part of the Restricted Shares will
lapse. 

			
	 Date Restricted Shares Become Vested
	  	 Number of Restricted Shares

	  
	  	         Restricted Shares [20% of the total number of Shares granted under this Award Agreement]
		
	  
	  	an additional          Restricted Shares [20% of the total number of Shares granted under this Award Agreement]
		
	  
	  	an additional          Restricted Shares [20% of the total number of Shares granted under this Award Agreement]
		
	  
	  	an additional          Restricted Shares [20% of the total number of Shares granted under this Award Agreement]
		
	  
	  	an additional          Restricted Shares [20% of the total number of Shares granted under this Award Agreement]

 Notwithstanding the foregoing, all unvested Restricted Shares awarded to the Grantee shall become fully vested at
any earlier time set forth in the Grantee’s Employment Agreement with the Trust. 
 3. Share Certificate; Restrictions.
Certificates for Restricted Shares shall be registered in the Grantee’s name (or, if the Grantee so requests, in the name of the Grantee and the Grantee’s spouse, jointly with right of survivorship). With respect to Restricted Shares in
which the Grantee is not vested on the Award Date, the Grantee shall, immediately upon receipt thereof, deposit all certificates for such unvested Restricted Shares together with a stock power executed in favor of the Trust, with the Trust.
Certificates for such unvested Restricted Shares shall be held by the Trust until the Grantee becomes vested in such Restricted Shares. The certificates may include a legend setting forth the restrictions on transfer. 
 4. Voting and Dividend Rights. The Grantee shall have voting rights on non-vested Restricted Shares and receive as compensation (subject to the
withholding of applicable taxes) an amount equal to the dividends that otherwise would have been payable to the Grantee had the Grantee been vested in such Restricted Shares on the date of their original issuance. 
 5. Termination of Service. If the Grantee’s service with the Trust and all of its “Subsidiary Entities” (as defined in the Plan) is
terminated for any reason (including death or “Disability” (as defined in the Plan)), all unvested Restricted Shares held by the Grantee at the time of termination of service shall either (i) be transferred to the Trust pursuant to
the stock power described in Paragraph 3 without any further action by the Grantee, or (ii) become fully vested, whichever is provided in the Grantee’s Employment Agreement with the Trust. 
  

 - 2 - 

 6. Notice of Tax Election. If the Grantee makes an election under section 83(b) of the Internal
Revenue Code of 1986, as amended (the “Code”), for the immediate recognition of income attributable to the award of Restricted Shares, the Grantee shall inform the Trust in writing of such election within 10 days of the filing of such
election. The amount includible in the Grantee’s income as a result of an election under section 83(b) of the Code shall be subject to applicable federal, state and local tax withholding requirements and to such additional withholding rules
(the “Withholding Rules”) as shall be adopted by the Committee. 
 7. Transferability. The Grantee may not assign or
transfer, in whole or in part, Restricted Shares subject to the Award Agreement in which the Grantee is not vested. 
 8. Withholding of
Taxes. The obligation of the Trust to deliver Shares upon the vesting of Restricted Shares shall be subject to applicable federal, state and local tax withholding requirements. If the amount includible in the Grantee’s income as a result of
the vesting of Restricted Shares is subject to the withholding requirements of applicable tax law, the Grantee, subject to the provisions of the Plan and the Withholding Rules, may satisfy the withholding tax, in whole or in part, by electing to
have the Trust withhold Shares (or by returning Shares to the Trust). Such Shares shall be valued, for this purpose, at their “Fair Market Value” (as defined in Section 2 of the Plan) on the date the amount attributable to the vesting
of the Restricted Shares is includible in income by the Grantee under section 83 of the Code. Such election must be made in compliance with and subject to the Withholding Rules, and the Trust may not withhold Shares in excess of that number
necessary to satisfy the minimum federal, state and local income tax and Social Security (“FICA”) and federal unemployment (“FUTA”) withholding requirements. Notwithstanding the foregoing, the Trust may limit the number of shares
withheld to the extent necessary to avoid adverse accounting consequences. The Grantee may elect to have the Trust withhold Shares for this purpose by checking the appropriate box below: 
 I  ̈ DO  ̈ DO NOT elect at this time to have the Trust withhold the number of Shares necessary to satisfy the minimum federal, state and local income tax and FICA and FUTA withholding
requirements at the time(s) I become vested in the Restricted Shares subject to this Award Agreement. This election may be changed upon at least 10 business days’ written notice to the Trust before a vesting date. 
 9. Governing Law. This Award Agreement shall be construed in accordance with, and its interpretation shall be governed by, applicable federal law
and otherwise by the laws of the Commonwealth of Pennsylvania (without reference to the principles of conflicts of laws). 
  

 - 3 - 

 IN WITNESS WHEREOF, the Trust has caused this Award Agreement to be duly executed by its duly authorized
officer and the Grantee has hereunto set his or her hand and seal, all as of the day and year first above written. 
  

			
	 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

		
	 By:
	 	  

	
	  

	
	 Grantee

  

 - 4 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]