Document:

exv10w2

Exhibit 10.2

Federal Signal Corporation

2005 Executive Incentive Compensation Plan

Performance Based Restricted Stock Unit — Award Agreement

     You have been selected to receive a grant of Performance Based Restricted Stock Units pursuant
to the Federal Signal Corporation 2005 Executive Incentive Compensation Plan (the “Plan”), as
specified below:

	 	 	 	 	 
	 

	 	Employee:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	Date of Grant:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	   Performance Based Restricted Stock Units Granted:	 	 
	 

	 	 	 	 

     Performance Period: January 1, 2009 through December 31, 2011

     This Award shall be subject to the terms and conditions prescribed in the Federal Signal
Corporation 2005 Executive Incentive Compensation Plan and in the Federal Signal Corporation
Performance Based Restricted Stock Unit Award Agreement No. 2009 attached hereto.

This document constitutes part of the prospectus covering

securities that have been registered under the Securities Act of 1933.

     IN WITNESS WHEREOF, the parties have caused this Award Agreement to be executed on this
                     day of                     .

	 	 	 	 	 	 	 
	 	 	FEDERAL SIGNAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 		 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

“Employee”
	 	 

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FEDERAL SIGNAL CORPORATION

PERFORMANCE BASED RESTRICTED STOCK UNIT

AWARD AGREEMENT NO. 2009

     The Company established the Federal Signal Corporation 2005 Executive Incentive Compensation
Plan (the “Plan”) pursuant to which options, stock appreciation rights, restricted stock and stock
units and performance shares covering an aggregate of 4,000,000 shares of the Stock of the Company
may be granted to employees and directors of the Company and its subsidiaries;

     The Board of Directors of the Company, and the Administrator of the Plan appointed by the
Board of Directors, has determined that the interests of the Company will be advanced by
encouraging and enabling certain of its employees to own shares of the common stock of the Company,
and that Employee is one of those employees;

          NOW, THEREFORE, in consideration of services rendered and the mutual covenants herein
contained, the parties agree as follows:

Section 1. Definitions

          As used in this Agreement, the following terms shall have the following meanings:

          A. “Award” means the award provided for in Section 2.

          B. “Board of Directors” means the Board of Directors of the Company.

          C. “Change in Control” shall have the meaning ascribed to such term in the Company’s Change in
Control Policy.

          D. “Date of Award” of Performance Based Restricted Stock Units means the date set forth on the
Award instrument applicable those Units.

          E. “Employee” means the individual shown as the recipient of an award of Performance Based
Restricted Stock Units, as set forth on the Award instrument applicable those Units.

          F. “Performance Based Restricted Stock Unit” means the obligation of the Company to transfer
the number of shares of Stock to Employee prescribed in Section 2, at the time provided in Section
5 of this Agreement, provided such Performance Based Restricted Stock Unit is vested at such time.

          G. “Performance Period” means the three consecutive calendar year period set forth in the
Award instrument.

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          H. “Permanent Disability” means Employee is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than twelve
months.

          I. “Stock” means the common stock of the Company.

          J. “Subsidiary” means any corporation, other than the Company, in an unbroken chain of
corporations beginning with the Company if, at the relevant date, each of the corporations, other
than the last corporation in the unbroken chain, owns stock possessing fifty percent or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain.

          K. “Vesting Date” means the date specified in Section 4.

Section 2. Award

     Subject to the terms of this Agreement, the Company awarded to Employee the number of
Performance Based Restricted Stock Units set forth on the Award instrument applicable those Units,
effective as of the Date of Award set forth on such instrument.

     A Performance Based Restricted Stock Unit Award entitles the Employee to receive a whole
number of shares of Stock equal to a percentage, from zero to two hundred percent, based on the
Total Shareholder Return during the Performance Period, of the number of Performance Based
Restricted Stock Units that are subject to the Award, as described in this Section.

     If the Company’s Peer Percentile Rank is less than 25%, the Employee shall be entitled to
receive no shares with respect to the Performance Based Restricted Stock Units subject to the
Award.

     If the Company’s Peer Percentile Rank is at least 25% but less than 50%, the Employee shall be
entitled to receive shares equal to 25% percent of the Performance Based Restricted Stock Units
subject to the Award, plus three additional percent of the Performance Based Restricted Stock Units
subject to the Award for each whole percent of the Company’s Peer Percentile Rank above 25% (for a
total of 100% if the Company’s Peer Percentile Rank is 50%).

     If the Company’s Peer Percentile Rank is at least 50% but less than 75%, the Employee shall be
entitled to receive shares equal to 100% percent of the Performance Based Restricted Stock Units
subject to the Award, plus two additional percent of the Performance Based Restricted Stock Units
subject to the Award for each whole percent of the Company’s Peer Percentile Rank above 50% (for a
total of 150% if the Company’s Peer Percentile Rank is 75%).

     If the Company’s Peer Percentile Rank is at least 75% but less than 90%, the Employee shall be
entitled to receive shares equal to 150% percent of the Performance Based Restricted Stock Units
subject to the Award, plus three and one-third additional percent of the Performance Based
Restricted Stock Units subject to the Award for each whole percent of the Company’s

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Peer Percentile Rank above 75% (rounded up to the nearest whole percent) (for a total of 200% if
the Company’s Peer Percentile Rank is 90% or more).

     If the Company’s Peer Percentile Rank is 90% or more, the Employee shall be entitled to
receive 200% percent of the Performance Based Restricted Stock Units subject to the Award.

     For example, if the Company’s Peer Percentile Rank is 40%, the Employee shall be entitled to
receive shares equal to 70% of the Performance Based Restricted Stock Units subject to the Award;
and if the Company’s Peer Percentile Rank is 60%, the Employee shall be entitled to receive shares
equal to 120% of the Performance Based Restricted Stock Units subject to the Award.

     The Company’s Peer Percentile Rank shall be determined by dividing the number of corporations
in the Peer Group with a lower Total Shareholder Return (“TSR”) than the Company’s TSR, by thirty
(the total number of corporations in the Peer Group) (rounded up to the nearest whole percent),
where:

	 	(a)	 	The Peer Group of corporations is attached as Exhibit A;

	 
	 	(b)	 	TSR of a corporation means the sum of its Change in Stock Price plus dividends
paid by the corporation during the Performance Period, divided by its Beginning Stock
Price;

	 
	 	(c)	 	Change in Stock Price means the difference between the Ending Stock Price and
the Beginning Stock Price;

	 
	 	(d)	 	Beginning Stock Price means the closing price of the shares of the corporation
on the last business day immediately preceding the first day of the Performance Period;
and

	 
	 	(e)	 	Ending Stock Price means the closing price of the shares of the corporation on
the last business day of the Performance Period.

     For example, if the TSR of the Company was higher than the TSR of twenty of the thirty
corporations in the Peer Group, its Peer Percentile Rank would be 67%, and Employee would be
entitled to receive shares equal to 134% of the number of Performance Based Restricted Stock Units
subject to the Award.

     This grant of Performance Based Restricted Stock Units shall not confer any right to the
Employee (or any other Employee) to be granted Performance Based Restricted Stock Units or other
Awards in the future under the Plan.

Section 3. Bookkeeping Account

     The Company shall record the number of Performance Based Restricted Stock Units granted
hereunder to a bookkeeping account for Employee (the “Performance Based Restricted Stock Unit
Account”). Employee’s Performance Based Restricted Stock Unit Account shall be

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debited by the number of Performance Based Restricted Stock Units, if any, forfeited in accordance
with Section 4 and by the number of Performance Based Restricted Stock Units with respect to which
shares of Stock were transferred to Employee in accordance with Section 5.

Section 4. Vesting

     Subject to the accelerated vesting provisions provided below, the Performance Based Restricted
Stock Units subject to the Award shall vest on the last day of the Performance Period, if Employee
remains employed by the Company or its Subsidiaries through such date.

     If, during the Performance Period, the Employee dies or terminates employment on account of
his Permanent Disability, the Performance Based Restricted Stock Units subject to the Award shall
be fully vested immediately.

     If during the Performance Period, the Employee terminates employment by reason of retirement
(as determined by the Company, in its sole and absolute discretion), the Performance Based
Restricted Stock Units subject to the Award shall be fully vested immediately.

     The Performance Based Restricted Stock Units subject to the Award also shall be fully vested
upon the occurrence of a Change in Control during the Performance Period or upon the occurrence of
the event(s) described in Section 4.1 below.

     In the event of the termination of employment of Employee with the Company and its
Subsidiaries for any other reason before the end of the Performance Period, all Performance Based
Restricted Stock Units that are not vested at the time of such termination of employment normally
shall be forfeited.

Section 4.1 Acceleration of Vesting of Shares in the Event of Divestiture of Business Segment

     In the event that the “Business Segment” (as that term is defined in this Section below) in
which the Employee is primarily employed as of the “Divestiture Date” (as that term is defined in
this Section below) is the subject of a “Divestiture of a Business Segment” (as that term is
defined in this Section below), and such divestiture results in the termination of the Employee’s
employment with the Company and its subsidiaries for any reason, the Performance Based Restricted
Stock Units subject to the Award shall be fully vested.

     For purposes of this Agreement, the term “Business Segment” shall mean a business line which
the Company treats as a separate business segment under the segment reporting rules under generally
accepted accounting principles as used in the United States, which currently includes the
following: Safety and Security Group, Fire Rescue and Environmental Solutions Group. Likewise, the
term “Divestiture Date” shall mean the date that a transaction constituting a Divestiture of a
Business Segment is finally consummated.

     For purposes of this Agreement, the term “Divestiture of a Business Segment” means the
following:

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	 	(a)	 	When used with reference to the sale of stock or other
securities of a Business Segment that is or becomes a separate corporation,
limited liability company, partnership or other separate business entity, the
sale, exchange, transfer, distribution or other disposition of the ownership,
either beneficially or of record or both, by the Company or one of its
subsidiaries to “Nonaffiliated Persons” (as that term is defined in this
Section below) of 100% of either (i) the then-outstanding common stock (or the
equivalent equity interests) of the Business Segment or (ii) the combined
voting power of the then-outstanding voting securities of the Business Segment
entitled to vote generally in the election of the board of directors or the
equivalent governing body of the Business Segment;

	 
	 	(b)	 	When used with reference to the merger or consolidation of a
Business Segment that is or becomes a separate corporation, limited liability
company, partnership or other separate business entity, any such transaction
that results in Nonaffiliated Persons owning, either beneficially or of record
or both, 100% of either (i) the then-outstanding common stock (or the
equivalent equity interests) of the Business Segment or (ii) the combined
voting power of the then-outstanding voting securities of the Business Segment
entitled to vote generally in the election of the board of directors or the
equivalent governing body of the Business Segment; or

	 
	 	(c)	 	When used with reference to the sale of the assets of the
Business Segment, the sale, exchange, transfer, liquidation, distribution or
other disposition of all or substantially all of the assets of the Business
Segment necessary or required to operate the Business Segment in the manner
that the Business Segment had been operated prior to the Divestiture Date.

Section 5. Distribution of Shares

     Subject to the provisions below (including a pro rata reduction in the number of shares
payable in the event of an early termination of employment or Change in Control), the number of
shares of Stock earned in accordance with Section 2, determined as of the end of the Performance
Period, with respect to Performance Based Restricted Stock Units that become vested in accordance
with Section 4, shall become distributable as of the end of the Performance Period (regardless of
whether the shares vest earlier).

     If, during the Performance Period, the Employee dies, terminates employment on account of
Permanent Disability, or terminates employment by reason of retirement (as determined by the
Company in its sole and absolute discretion), the number of shares of Stock that otherwise would
be earned in accordance with Section 2 shall be prorated based on the number of days during the
Performance Period that the Employee remained employed. Such number of shares of Stock shall
become distributable as of the end of the Performance Period (regardless of whether the shares vest
earlier).

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     If during the Performance Period the Employee’s employment is terminated as a result of the
Divestiture of a Business Segment (as defined in Section 4.1), the number of shares of Stock that
otherwise would be earned in accordance with Section 2 shall be prorated based on the number of
days during the Performance Period that the Employee remained employed. Such number of shares of
Stock shall become distributable as of the end of the Performance Period (regardless of whether the
shares vest earlier).

     If a Change in Control occurs during the Performance Period, notwithstanding anything in this
Agreement to the contrary, a number of shares equal to 100% percent of the Performance Based
Restricted Stock Units subject to the Award prorated based on the number of days during the
Performance Period before the date of the Change in Control shall become distributable on the date
of the Change in Control.

     Such shares shall be distributed as soon as administratively feasible after the date
prescribed above; but no later than two and one-half months after the end of the calendar year in
which the specified date occurs.

Section 6. Shareholder Rights

     Employee shall not have any of the rights of a shareholder of the Company with respect to
Performance Based Restricted Stock Units, such as the right to vote or the right to dividends.

Section 7. Death Benefits

     Shares payable on account of death of an Employee during the Performance Period shall be
transferred to the Employee’s Beneficiary or Beneficiaries as soon as practical after the end of
the Performance Period (regardless of whether the shares vest earlier), but no later than two and
one-half months after the end of the calendar year in which the Performance Period ends.

     Employee may designate a Beneficiary or Beneficiaries (contingently, consecutively, or
successively) of such death benefit and, from time to time, may change his or her designated
Beneficiary. A Beneficiary may be a trust. A beneficiary designation shall be made in writing in
a form prescribed by the Company and delivered to the Company while the Participant is alive. If
there is no designated Beneficiary surviving at the death of a Participant, payment of any death
benefit of the Participant shall be made to the persons and in the proportions which any death
benefit under the Federal Signal Corporation Employees’ Profit Sharing and Savings Plan is or would
be payable.

Section 8. Units Non-Transferable

     Performance Based Restricted Stock Units awarded hereunder shall not be transferable by
Employee. Except as may be required by the federal income tax withholding provisions of the Code
or by the tax laws of any State, the interests of Employee and his Beneficiaries under this
Agreement are not subject to the claims of their creditors and may not be voluntarily or
involuntarily sold, transferred, alienated, assigned, pledged, anticipated, or encumbered. Any

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attempt by Employee or a Beneficiary to sell, transfer, alienate, assign, pledge, anticipate,
encumber, charge or otherwise dispose of any right to benefits payable hereunder shall be void.

Section 9. Adjustment in Certain Events

     If there is any change in the Stock by reason of stock dividends, split-ups, mergers,
consolidations, reorganizations, combinations or exchanges of shares or the like, the number of
Performance Based Restricted Stock Units credited to Employee’s Performance Based Restricted Stock
Unit Account shall be adjusted appropriately so that the number of Performance Based Restricted
Stock Units credited to Employee’s Performance Based Restricted Stock Unit Account after such an
event shall equal the number of shares of Stock a shareholder would own after such an event if the
shareholder, at the time such an event occurred, had owned shares of Stock equal to the number of
Performance Based Restricted Stock Units credited to Employee’s Performance Based Restricted Stock
Unit Account immediately before such an event.

Section 10. Tax Withholding

     The Company shall not be obligated to transfer any shares of Stock until Employee pays to the
Company or a Subsidiary in cash, or any other form of property, including Stock, acceptable to the
Company, the amount required to be withheld from the wages of Employee with respect to such
shares. Employee may elect to have such withholding satisfied by a reduction of the number of
shares otherwise transferable under this Agreement at such time, such reduction to be calculated
based on the closing market price of the Stock on the day Employee gives written notice of such
election to the Company.

Section 11. Source of Payment

     Shares of Stock transferable to Employee, or his Beneficiary, under this Agreement may be
either Treasury shares, authorized but unissued shares, or any combination of such stock. The
Company shall have no duties to segregate or set aside any assets to secure Employee’s right to
receive shares of Stock under this Agreement. Employee shall not have any rights with respect to
transfer of shares of Stock under this Agreement other than the unsecured right to receive shares
of Stock from the Company.

Section 12. Continuation of Employment

     This Award Agreement shall not confer upon the Employee any right to continuation of
employment by the Company, nor shall this Award Agreement interfere in any way with the Company’s
right to terminate the Employee’s employment at any time.

Section 13. Amendment

     This Agreement may be amended by mutual consent of the parties hereto by written agreement.

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Section 14. Governing Law

     This Agreement shall be construed and administered in accordance with the laws of the State
of Illinois.

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FEDERAL SIGNAL CORPORATION

PERFORMANCE BASED RESTRICTED STOCK UNIT

BENEFICIARY DESIGNATION

	 	 	 
	Employee:                                                             

	 	Social Security No.:                                         
	Address:                                                             

	 	Date of Birth:                                                             
	 
	 	 
	 

	 	 

     Employee hereby designates the following individual(s) or entity(ies) as his or her
beneficiary(ies) pursuant to Federal Signal Corporation 2006 Equity Incentive Plan (Insert Name,
Social Security Number, Relationship, Date of Birth and Address of Individuals and/or fully
identify any trust beneficiary by the Name of the Trust, Date of Execution of the Trust, the
Trustee’s Name, the address of the trust, and the employer identification number of the trust):

Primary Beneficiary(ies)

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 

Contingent Beneficiary(ies)

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 

The Participant hereby reserves the right to change this Beneficiary Designation, and any such
change shall be effective when the Participant has executed a new or amended Beneficiary
Designation form, and the receipt of such form has been acknowledged by the Corporation, all in
such manner as specified by the Corporation from time to time, or on a future date specified by any
such new or amended Beneficiary Designation form.

     IN WITNESS WHEREAS, the Participant has executed this Beneficiary Designation on the date
designated below.

	 	 	 	 	 	 	 
	Date:                                         ,                     
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Signature of Employee	 	 
	 
	 	 	 	 	 	 
	Received:
	 	 	 	 	 	 
	 

	 	 	 	Federal Signal Corporation	 	 
	 
	 	 	 	 	 	 
	Date:                                         ,                     

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

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EXHIBIT A

TSR Peer Group

A.O. Smith Corporation

Ametek, Inc.

BorgWarner Inc.

Briggs & Stratton Corporation

Caterpillar Inc.

Cooper Industries, Inc.

Cummins, Inc.

Deere & Company

Dover Corporation

Eaton Corporation

Emerson Electric Co.

Honeywell International Inc.

Hubbell Incorporated

Illinois Tool Works Inc.

Ingersoll-Rand Company

Johnson Controls, Inc.

L-3 Communications Corporation

Motorola, Inc.

Oshkosh Truck Corporation

PACCAR Inc.

Parker Hannifin Corporation

Raytheon Company

Sauer-Danfoss Inc.

Teleflex Incorporated

Tennant Company

Thomas & Betts Corporation

The Timken Company

Valmont Industries, Inc.

Woodward Governor Company

Worthington Industries, Inc.

11EX-10.1

NISOURCE INC.

CORPORATE INCENTIVE PLAN

1. PURPOSE

The purpose of the NiSource Inc. Corporate Incentive Plan (“Plan”) is to motivate and reward
certain employees of NiSource Inc. (the “Corporation”) and its affiliates (individually, the
“Employer” and collectively, the “Employers”) by making a portion of their compensation dependent
upon the achievement of certain performance criteria.

2. ADMINISTRATION

The Plan is administered by the Officer Nomination and Compensation Committee (“Committee”) of the
Board of Directors of the Corporation (“Board”), which, subject to action of the Board, has
complete discretion and authority with respect to the Plan and its application, except to the
extent that discretion is expressly limited by the Plan.

3. ELIGIBILITY FOR PARTICIPATION

All exempt and non-exempt employees of the Corporation and its affiliates, other than employees who
have received a last chance letter, final notice letter or equivalent during the Plan year, certain
exempt employees who participate in other specialized functional incentive plans and bargaining
unit employees of Kokomo Gas and Fuel Company are eligible to participate in the Plan; provided
however, that the Committee may add additional employees and remove employees in its discretion
(“Eligible Employees”). The Committee or the Corporation’s Chief Executive Officer may determine
which Eligible Employees or groups of Eligible Employees shall actually participate in the Plan.
The Committee and the Chief Executive Officer generally shall make this determination each calendar
year (a “Performance Year”). Such officers and other Eligible Employees chosen to participate in
the Plan are “Participants.” Designation by the Committee or Chief Executive Officer as a
Participant in one Performance Year shall not confer on such Participant the right to be a
Participant in another Performance Year.

Notwithstanding the previous paragraph, an employee described above shall be a “Limited
Participant” if he or she has received one or more suspensions without pay totaling five days or
more during the calendar year. Each Limited Participant will have his or her individual incentive
opportunity reduced by at least 50%. Any Participant not covered under the preceding sentences is
a “Full Participant.”

4. CREATION OF PERFORMANCE TARGETS

	 	A.	 	GENERAL

Each year, the Committee shall determine the basic terms and conditions under which
incentive compensation will be paid under the Plan. The Committee or the Chief
Executive Officer of the Corporation, as described below, may specify different terms
and conditions for different Participants or different groups of Participants. A

 

 

Participant’s incentive compensation for a Performance Year may be based in whole or in
part on the Participant’s corporate division, department, or business unit (“Group”) and
in whole or in part on the performance of the Corporation as a whole.

	 	B.	 	PERFORMANCE GROUPS

The Committee or the Chief Executive Officer may segregate the Corporation into
different Groups. Groups may include (a) Corporate Support, (b) Gas Distribution
Business Unit, (c) NIE Business Unit, (d) NGT&S Business Unit, and (e) such other groups
determined by the Committee or the Chief Executive Officer. The Committee or the Chief
Executive Officer, in their sole discretion, shall place Participants in a Group based
upon their position in the Corporation. If a Participant changes positions during the
calendar year, the Participant will be assigned to a Group based on the position they
hold on December 31, unless the Committee or the Chief Executive Officer, in their sole
discretion, determines otherwise.

	 	C.	 	CORPORATE AND PERFORMANCE UNIT CONDITIONS; CREATION OF INCENTIVE POOL

1. General Corporate Conditions

Whether an incentive payment will be made under this Plan may depend upon the
Corporation achieving a financial trigger for an applicable Performance Year. The
Committee may select the financial trigger for each performance Year based on any
objective criteria, including criteria that relate to operating earnings per share,
funds from operations, business unit operating earnings, revenue, expense control,
shareholder return, valuation, productivity, or such other criteria determined by the
Committee (the “Performance Criteria”). The Committee will have full discretion and
authority to determine and certify whether the trigger has been achieved and whether any
adjustments need to be made in calculating the trigger to reflect unusual or
non-recurring events. If the financial trigger is less than a minimum performance
standard determined by the Committee for the applicable Performance Year, no amount will
be payable under the Plan.

2. Group Performance Conditions and Incentive Pool

If the financial trigger described in Part (1) above is reached, the Committee may
create an incentive pool for each Group from which bonuses under this Plan will be paid
(the “Incentive Pool”). To determine the Incentive Pool for each Group, the Committee
may establish one or more financial triggers that the Group needs to achieve for the
Performance Year based upon any Performance Criteria. The Committee may delegate this
authority to one or more officers. The Committee may assign payout percentages based
upon various potential results, ranging from a minimum “Trigger” percentage to a maximum
“Stretch” percentage, to be applied if the financial triggers are met. The Committee
has full discretion and authority to
determine the “Target” payout and the “Trigger” and “Stretch” payouts for each

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Performance Year.

5. DISTRIBUTION OF THE INCENTIVE PAYMENT

	 	A.	 	General Timing of Payment

If payable, the Participant’s bonus will be distributed to the Participant, or the
Participant’s estate in the event of the Participant’s death before payment, in cash in
a single sum as soon after the end of the applicable Performance Year as practicable,
but no later than March 15 after the end of the Performance Year, in accordance with the
Corporation’s payroll practices. A Participant who terminates his or her employment
with the Corporation after the end of the Performance Year, but before the distribution
of the incentive payment will be entitled to receive any payment due under this Plan.
However, any participant that is terminated “for cause” before the distribution of the
incentive payment will not be entitled to receive any payment due under this plan.
Notwithstanding the foregoing, any Participant who terminates employment with the
Employer and their affiliates due to death, disability or retirement, pursuant to an
Employer’s qualified retirement plan, during a calendar year will be deemed a
Participant on December 31 of such calendar year, and will receive an incentive payment
for such year based on his or her Eligible Earnings through the date of termination of
employment.

	 	B.	 	Over/Under Payments

If any Participant or beneficiary receives an underpayment of any bonus payable under
this Plan, payment of any such shortfall shall be made as soon as administratively
practicable. If any Participant or beneficiary receives an overpayment of any bonus
payable under the terms of this Plan for any reason, the Committee or its delegate shall
have the right, in its sole discretion, to take whatever action it deems appropriate,
including but not limited to the right to require repayment of such amount or to reduce
future payments under this Plan, to recover any such overpayment. Notwithstanding the
foregoing, if the Corporation is required to prepare an accounting restatement due to
the material noncompliance of the Corporation, as a result of misconduct, with any
financial reporting requirement under the securities laws, and if the Participant
knowingly or grossly negligently engaged in the misconduct, or knowingly or grossly
negligently failed to prevent the misconduct, or if the Participant is one of the
individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act
of 2002, the Participant shall reimburse the Corporation the amount of any payment in
settlement of bonus earned or accrued during the twelve- (12-) month period following
the first public issuance or filing with the United States Securities and Exchange
Commission (whichever just occurred) of the financial document embodying such financial
reporting requirement.

6. CONTINUITY OF THE PLAN

Although it is the present intention of the Corporation to continue the Plan in effect for an

- 3 -

 

indefinite period of time, the Corporation reserves the right to terminate the Plan in its entirety
as of the end of any calendar year or to modify the Plan as it exists from time to time, provided
that no such action shall adversely affect any incentive payment amounts previously earned in a
preceding calendar year under the Plan.

7. NOTICES

Any notice required or permitted to be given by the Corporation or the Committee pursuant to the
Plan shall be deemed given when personally delivered or deposited in the United States mail,
registered or certified, postage prepaid, addressed to the Participant, his or her beneficiary,
executors, administrators, successors, assigns or transferees, at the last address shown for the
Participant on the records of the Corporation or subsequently provided in writing to the
Corporation.

8. WITHHOLDING

The Corporation may withhold from any incentive payment under the Plan amounts sufficient to
satisfy applicable withholding requirements under any federal, state or local law, and deductions
as may be required pursuant to agreement with, or without the consent of, a Participant, including
withholding with respect to any elective deferrals under the deferred compensation arrangement
sponsored by the Corporation.

9. MISCELLANEOUS PROVISIONS

	 	A.	 	Except as otherwise provided in Section 5(B), no incentive payment under the Plan
shall be subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge prior to actual receipt thereof by the payee; and any
attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber or charge
prior to such receipt shall be void; and the Corporation shall not be liable in any
manner for or subject to the debts, contracts, liabilities, engagements or torts of any
person entitled to any incentive payment under the Plan.
	 
	 	B.	 	Nothing contained herein will confer upon any Participant the right to be retained
in the service of an Employer or any affiliate thereof nor limit the right of an Employer
or any subsidiary thereof to discharge or otherwise deal with any Participant without
regard to the existence of the Plan.
	 
	 	C.	 	The Plan shall at all times be entirely unfunded and no provision shall at any time
be made with respect to segregating assets of an Employer or any affiliate thereof for
payment of any incentive payments hereunder. No Participant or any other person shall
have any interest in any particular assets of an Employer or any affiliate thereof by
reason of the right to receive an incentive payment under the Plan and any such
Participant or any other person shall have only the rights of a general unsecured
creditor of an Employer or any affiliate thereof with respect to any rights under the
Plan.

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10. GOVERNING LAW

The provisions of the Plan shall be construed and interpreted according to the laws of the State of
Indiana, except as preempted by federal law.

IN WITNESS WHEREOF, the Corporation has adopted this Plan and caused this Plan to be executed on
its behalf by its officer duly authorized, on this 24 day of March, 2009.

	 	 	 	 	 	 	 
	 	 	NISOURCE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Robert Campbell
 

	 	 
	 

	 	 	 	  Robert Campbell	 	 

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