Document:

Exhibit 10.1

 

Execution Version

 

AMENDMENT NO. 1

TO LOAN AGREEMENT

 

THIS AMENDMENT NO. 1 TO LOAN AGREEMENT (the “Amendment”), dated as of April 29, 2014, is made and entered into by and among RESOURCE CAPITAL FUND V L.P., as the lender (the “Lender”), URANIUM RESOURCES, INC., a corporation organized and existing under the laws of the State of Delaware, as the borrower (the “Borrower”), and those Subsidiaries of the Borrower from time to time party hereto, as guarantors (the “Guarantors”).

 

Recitals

 

A.                                    The Lender, the Borrower and the Guarantors are parties to that certain Loan Agreement dated as of November 13, 2013 (as amended, modified, supplemented, extended or restated from time to time, the “Loan Agreement”).

 

B.                                    The Borrower and the other Credit Parties are all affiliated entities, and the Guarantors are direct or indirect Subsidiaries of the Borrower.  The Borrower and the other Credit Parties are engaged in related businesses and are integrated to such an extent that the financial strength and flexibility of each Credit Party has a direct, tangible and immediate impact on the success of the other Credit Parties.  Each Guarantor will derive substantial direct and indirect benefit from the Loan Agreement and this Amendment, and each Guarantor has entered into this Amendment, the Loan Agreement and the other Loan Documents for legitimate business purposes.

 

C.                                    The Lender, the Borrower and the Guarantors desire hereby to amend the Loan Agreement to, among other things, reduce the size of the Tranche Two Commitment to $3,000,000 and cancel the Tranche Three Commitment, all on the terms and conditions set forth herein.  The Lender, the Borrower and the Guarantors further desire to ratify and confirm the Loan Agreement (as so amended) and the other Loan Documents.

 

Agreement

 

NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations and warranties herein set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Defined Terms.  Capitalized terms used but not defined in this Amendment shall have the meanings given thereto in the Loan Agreement.

 

2.                                      Agreements and Amendments to the Loan Agreement.

 

a.                                      Subject to the terms and conditions set forth herein, the Loan Agreement is hereby amended to the extent necessary to give effect to the provisions of this Amendment and to incorporate the provisions of this Amendment into the Loan Agreement.  The Loan Agreement, together with this Amendment, shall be read together and have effect so far as

 

 

practicable as though the provisions thereof and the relevant provisions hereof are contained in one document.

 

b.                                      The Lender, the Borrower and the Guarantors hereby agree that: (i) the Tranche Two Commitment is hereby reduced from Five Million Dollars ($5,000,000) to Three Million Dollars ($3,000,000); and (ii) the Tranche Three Commitment of Five Million Dollars ($5,000,000) is hereby cancelled and terminated, and to that end:

 

(i)                                     The Loan Agreement is hereby amended by deleting the defined term “Tranche Two Commitment” therefrom and substituting the following therefor:

 

“ “Tranche Two Commitment” means Three Million Dollars ($3,000,000).”

 

(ii)                                  The Loan Agreement is hereby amended by deleting the following definitions therefrom: “Tranche Three Availability Period” and “Tranche Three Commitment”, and all references to the “Tranche Three Availability Period” and the “Tranche Three Commitment” in the Loan Agreement or any other Loan Document, and the provisions of such documents related thereto, shall be deemed to be of no further force and effect.

 

(iii)                               Upon advance, the Tranche Two Commitment (as modified above) shall expire, and the Commitment Fee shall cease accruing.

 

c.                                       The Loan Agreement is hereby amended by deleting clause (b) of Section 5.3 therefrom and substituting the following therefor:

 

“(b)                           (i) The Borrower shall have complied with Section 2.5; (ii) the Credit Parties shall have conducted their business, operations, and activities, including the development of the Projects, in accordance with the Work Program and Budget; and (iii) any decision with respect to starting up development activities or recommencing the extraction or production of Metals from any Project located in Texas shall be subject to the prior affirmative decision of the Board of Directors of the Borrower which shall take into consideration the profitability of the Project.”

 

d.                                      The Loan Agreement is hereby amended by adding the following language to Section 11.6, following the last sentence thereof:

 

“The Lender shall notify the Borrower in writing of any assignment or grant of a participation by the Lender pursuant to this Section 11.6, and the Borrower shall maintain at its address referred to in Section 11.2 a copy of any written notification of assignment or participation and a register for the recordation of the names and addresses of the Lender and any assignee or participant and the principal amount of the Loan and the stated interest rate owing to each Lender, assignee or participant.  Such register shall be available for inspection by the Lender at any reasonable time and from time to time, and upon any request by the Lender from time to time, the Borrower shall promptly provide the Lender with a copy of such register.  In the event of any assignment or participation of the Loan or any portion thereof, the Borrower, at its own expense, shall execute and

 

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deliver to the Lender in exchange for the Promissory Note(s) one or more new Promissory Note(s) payable to the order of the new or participating Lender in an amount equal to the Commitment assumed by such new or participating Lender and, unless the transferor Lender has not retained a Commitment hereunder, a new Promissory Note payable to the order of the transferor Lender in an amount equal to the Commitment retained by the transferor Lender hereunder.  Such new Promissory Notes shall otherwise be in the form of the Promissory Notes replaced thereby.  The Promissory Notes surrendered by the transferor Lender shall be promptly returned to the Borrower marked “cancelled”.  For the purposes of any consents that the Lender may grant hereunder or other action the Lender may take hereunder (other than the exercise of Conversion Rights or the election to receive cash in lieu of Interest Shares or Commitment Fee Shares, both of which shall require the approval of each Lender), the approval of Lenders holding at least a majority of the then outstanding principal amount of the Loan shall be required to grant such consent or take such other action.”

 

e.                                       The Borrower, the Guarantors and the Lender agree that the Loan Agreement, as amended hereby, is ratified and confirmed, and remains in full force and effect in accordance with its terms.

 

f.                                        As a condition to the Lender entering into this Amendment, the Borrower and each other Credit Party hereby irrevocably confirm and agree that each Security Document and each of the other Loan Documents executed by the Borrower and/or any Guarantor, and all guaranties, grants of security, debentures, mortgages, liens, deeds, pledges and rights thereunder, are hereby ratified and confirmed, remain in full force and effect, remain fully perfected, and apply to the Loan Agreement as amended hereby and the entirety of the Loan (including any additional amounts advanced pursuant to this Amendment).

 

g.                                       This Amendment and all other Instruments executed and delivered by the Borrower or any other Credit Party in connection with this Amendment are and shall be deemed to be “Loan Documents” for all purposes.

 

3.                                      Representations and Warranties.

 

a.                                      Each Credit Party hereby remakes and restates each of its representations and warranties in the Loan Agreement and the other Loan Documents, effective as of the date of this Amendment, which representations and warranties are incorporated herein by reference as if fully set forth.

 

b.                                      Each Credit Party hereby further represents and warrants that: (i) it has the corporate power and authority, and the legal right, to execute, deliver and perform this Amendment; (ii) this Amendment has been duly authorized, executed and delivered by each Credit Party; (iii) no consent or authorization of any Governmental Authority or other Person is required in connection with this Amendment; (iv) this Amendment constitutes a legal, valid and binding obligation of each Credit Party, enforceable against each Credit Party in accordance with its terms; (v) no Default or Event of Default has occurred and is continuing or will occur as a result of the consummation of the transactions contemplated hereby or as a result of the

 

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continuation of the Loan Agreement; and (vi) the Recitals set forth above are true and correct in all respects.

 

4.                                      Conditions Precedent.  This Amendment shall become effective as of the date hereof upon (and only upon) satisfaction of the following conditions precedent:

 

a.                                      The Lender has received this Amendment, duly executed by the Borrower and the applicable Credit Parties.

 

b.                                      The Lender shall have received such other Instruments, certificates, information and opinions as the Lender may reasonably request, in each case, in form and substance reasonably satisfactory to the Lender.

 

5.                                      Miscellaneous Provisions.

 

a.                                      This Amendment is a Loan Document.  The Loan Agreement as amended by this Amendment is hereby ratified, approved, confirmed, and continued in each and every respect, and the parties hereto agree that the Loan Agreement remains in full force and effect in accordance with its terms.  Nothing contained herein shall be construed to release, terminate or act as a novation of, in whole or in part, any Loan Document or any guaranty, lien, mortgage, deed, debenture, indenture, pledge or security interest granted pursuant thereto.  All references to the Loan Agreement in each of the Loan Documents and in any other document or instrument shall hereafter be deemed to refer to the Loan Agreement as amended hereby.  The Loan Documents shall remain unchanged and in full force and effect, except as provided in this Amendment or in any agreement executed and delivered by the Lender in connection herewith, and the Loan Documents are hereby ratified, confirmed, and continued in full force and effect in all respects.  This Amendment shall not be construed as a waiver or amendment of any other provision of the Loan Agreement or the other Loan Documents or for any purpose, except as expressly set forth herein, or a consent to any other, further or future action on the part of the Borrower or the other Credit Parties that would require the waiver or consent of the Lender.

 

b.                                      This Amendment shall be governed by and construed in accordance with the laws of the State of Colorado, excluding that body of law relating to conflict of laws.

 

c.                                       This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  This Amendment may be validly executed and delivered by facsimile, portable document format (.pdf) or other electronic transmission, and a signature by facsimile, portable document format (.pdf) or other electronic transmission shall be as effective and binding as delivery of a manually executed original signature.

 

d.                                      The execution, delivery and effectiveness of this Amendment shall not prejudice, limit, operate, or be deemed to operate, as a limitation on or waiver of, any rights, powers or remedies of the Lender under the Loan Agreement or any other Loan Document or constitute a waiver of any provision thereof.  Nothing in this Amendment shall affect or impair

 

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the right of the Lender to demand compliance by the Credit Parties with all of the terms and conditions of the Loan Agreement and the other Loan Documents in all other instances.

 

e.                                       This Amendment shall be binding upon and inure to the benefit of the Lender, the Borrower and the Guarantors, and their respective successors and assigns permitted by the Loan Agreement.

 

f.                                        The Borrower and the Guarantors agree and confirm that the Lender has no fiduciary relationship with or duty to the Borrower or any other Credit Party arising out of or in connection with this Amendment or the Loan Agreement or any other agreement, arrangement, Instrument or investment, and the relationship between the Lender, on one hand, and the Borrower and the other Credit Parties, on the other hand, in connection with this Amendment and the Loan Agreement is solely that of debtor and creditor.  This Amendment and the Loan Agreement do not create a joint venture or partnership among the parties hereto, and no joint venture, partnership or other fiduciary relationship or fiduciary duty exists, or shall be deemed to exist, among the Lender and the Borrower, or among the Lender and the other Credit Parties.

 

g.                                       The Borrower and the Guarantors agree and confirm that they are engaged in related businesses and are integrated to such an extent that the financial strength and flexibility of each Credit Party has a direct, tangible and immediate impact on the success of the other Credit Parties.  The Guarantors will derive substantial direct and indirect benefit from the continuation and extension of the Loan Agreement.  The Guarantors waive any right to revoke, terminate or suspend their respective Guarantees and acknowledge that each of them entered into such Guarantee, and has confirmed and continued such Guarantee, in contemplation of the benefits that each of them would receive by the Loan Agreement and by this Amendment.

 

h.                                      The Borrower shall pay all reasonable costs, fees and expenses paid or incurred by the Lender incident to this Amendment, the Loan Agreement and the transactions contemplated hereby and thereby, including, without limitation, the reasonable fees and expenses of Lender’s counsel in connection with the negotiation, preparation, delivery and execution of this Amendment and any related documents and instruments.

 

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remainder of this page intentionally blank

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized as of the date first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
URANIUM RESOURCES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
URI, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
HYDRO RESOURCES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
URI MINERALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
BELT LINE RESOURCES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    

 

[Amendment No. 1 Signature Page]

 

 

	
 
    	
URANCO INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
HRI-CHURCHROCK, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
URI NEUTRON HOLDINGS I, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
URI NEUTRON HOLDINGS II, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
HYDRO RESTORATION CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    

 

[Amendment No. 1 Signature Page]

 

 

	
 
    	
NEUTRON ENERGY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CIBOLLA RESOURCES LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey L. Vigil
    
	
 
    	
Name:
    	
Jeffrey   L. Vigil
    
	
 
    	
Title:
    	
Vice   President — Finance and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
The   Lender:
    
	
 
    	
 
    
	
 
    	
RESOURCE   CAPITAL FUND V L.P.
    
	
 
    	
 
    
	
 
    	
By:   
    	
Resource   Capital Associates V L.P.,
    
	
 
    	
 
    	
General   Partner
    
	
 
    	
By:   
    	
RCA   V GP Ltd.,
    
	
 
    	
 
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Catherine J. Boggs
    
	
 
    	
Name:
    	
Catherine   J. Boggs
    
	
 
    	
Title:
    	
General   Counsel
    
				

 

[Amendment No. 1 Signature Page]NI-EX10.1_2014.3.31

Exhibit 10.1
NiSource Inc.
2010 Omnibus Incentive Plan

Performance Share Award Agreement

This Performance Share Award Agreement (the “Agreement”), is made and entered into as of DATE (the “Date of Grant”), by and between NiSource Inc., a Delaware corporation (the “Company”), and _____________________, an Employee of the Company (the “Grantee”).

Section 1.  Performance Share Award.  The Company hereby grants to the Grantee, on the terms and conditions hereinafter set forth, an Award of ___________ Performance Shares. The Performance Shares will be represented by a bookkeeping entry (the “Performance Share Account”) of the Company, and each Performance Share will be settled with one share of the Company’s common stock to the extent provided under this Agreement and the Plan.

Section 2.  Grantee Accounts.  The number of Performance Shares granted pursuant to this Agreement shall be credited to the Grantee’s Performance Share Account.  Each Performance Share Account shall be maintained on the books of the Company until full payment of the balance thereof has been made to the Grantee (or the Grantee’s beneficiaries or estate if the Grantee is deceased) in accordance with Section 1 above.  No funds shall be set aside or earmarked for any Performance Share Account, which shall be purely a bookkeeping device.

Section 3.  Performance Period.  The “Performance Period” is the period beginning on January 1, 2014, and ending on December 31, 2016.  

Section 4.  Vesting and Lapse of Performance Restrictions.  

		
	(a)
	Performance Restrictions.  The Performance Restrictions shall lapse only upon both the Grantee’s continued employment through February 28, 2017 and the date the Committee certifies the following results (including interpolation between the results, expressed as a percentage of the target except as otherwise noted below): 

		
	(i)
	The Performance Restrictions of fifty percent of the Award shall lapse based on achievement of cumulative “net operating earnings” per Share for the Performance Period in accordance with the following schedule: 

	
		
	Cumulative Net Operating Earnings Per Share
	Percentage of Award Granted

	<$5.11
	0%

	$5.11
	50%

	$5.26
	100%

	>$5.63
	200%

    

		
	(ii)
	The Performance Restrictions of fifty percent of the Award shall lapse based on the Company’s positive Relative Total Shareholder Return (“RTSR”) as of the last day of the Performance Period in accordance with the following schedule:  

            
	
		
	RTSR* Percent Ranking
	Percentage of Award Granted

	<40th
	0%

	>40th and <50th**
	50%

	50th
	100%

	100th
	200%

*Relative Total Shareholder Return (RTSR) is the annualized growth in the dividends and share price of a share of the Company’s common stock, calculated using a 20 day trading average of the Company’s closing price beginning December 31, 2013 and ending December 31, 2016 compared to the TSR performance of a peer group of companies determined by the Committee at its meeting on January 30, 2014. 

Negative TSR for the Performance Period will result in a maximum payout at target regardless of relative performance. 

** There is no interpolation between goals below the 50th percentile for the RTSR metric.

		
	(b)
	Committee Certification.  As soon as practicable after the end of the Performance Period, the Committee will certify in writing whether the Performance Restrictions have been met for the Performance Period and determine the number of Shares, if any, that will be payable to the Grantee; provided, however, that if the Committee certifies that the Performance Restrictions have been met, the Committee may, in its sole discretion, adjust the number of Shares payable to the Grantee with respect to the Award to reflect the effect of extraordinary events upon the Performance Restrictions, as provided under the Plan.  The date of the Committee’s certification under this Section shall hereinafter be referred to as the “Certification Date.”  The Company will notify the Grantee (or the executors or administrators of the Grantee’s estate, if appropriate) of the Committee’s certification following the Certification Date (such notice being the “Determination Notice”).  The Determination Notice shall specify (i) the Company’s cumulative net operating earnings per share and Relative Total Shareholder Return for the Performance Period and (ii) the number of Shares payable in accordance with the Committee’s certification.    

		
	(c)
	Effect of Termination of Service Before February 28, 2017.  Except as set forth below, if Grantee’s Service is terminated for any reason prior to February 28, 2017 or prior to the occurrence of any otherwise applicable vesting event provided in this Section, the Grantee shall forfeit the Performance Shares credited to the Grantee’s Performance Share Account.  Notwithstanding the foregoing, in the event that Grantee’s Service terminates prior to February 28, 2017 as a result of (i) Grantee’s Retirement; or (ii) Grantee’s Disability; or (iii) Grantee’s death and such death occurs with less than or equal to twelve months remaining in the Performance Period, the Grantee shall receive a pro rata distribution of Shares after the certification date described in part (a) above; provided that the Committee actually certifies that the Performance Restrictions for the Performance Period have been met.  Such pro rata 

grant of Shares shall be determined using a fraction, where the numerator shall be the number of full or partial calendar months elapsed between the Date of Grant and the date the Grantee terminates Service, and the denominator shall be the number of full or partial calendar months elapsed between the Date of Grant and February 28, 2017.  Additionally, if the Grantee terminates Service due to death prior to February 28, 2017 with more than 12 months remaining in the Performance Period, the Grantee shall receive, as soon as practicable after the date of termination, a pro rata distribution of Shares equal to the number of Shares that the Grantee otherwise would have received had the Performance Restrictions been met at target for the Performance Period.  Such pro rata grant of Shares shall be determined using a fraction, where the numerator shall be the number of full or partial calendar months elapsed between the Date of Grant and the date the Grantee terminates Service, and the denominator shall be the number of full or partial calendar months elapsed between the Date of Grant and February 28, 2017.  For purposes of this Agreement, “Retirement” means the Grantee’s attainment of age 55 and 10 years of Service.

		
	(d)
	Change in Control.  Notwithstanding the foregoing provisions, all Performance Shares shall become fully and immediately vested, and all restrictions shall lapse, on the fifth business day before the date of consummation of a Change in Control of the Company.

		
	(e)
	Code Section 162(m) Limitation.  Notwithstanding the previous provisions of this Section, during any calendar year with respect to which the Grantee is a Covered Officer (for purposes of Internal Revenue Code (“Code”) Section 162 (m)), if the Grantee otherwise would vest in a number of Performance Shares under this Section, the Grantee instead may vest only with respect to a sufficient number of Performance Shares whose aggregate Fair Market Value on the date such restrictions would, when added to the Grantee’s “applicable employee remuneration” (as defined in Code Section 162(m)) for the applicable calendar year that does not constitute “qualified performance-based compensation” (as defined in Code Section 162(m)), not exceed the aggregate amount of $999,999.00 for the applicable calendar year (the “Limitation”).

To the extent the restrictions on any Performance Shares do not lapse due to the application of this Section, the restrictions on such Performance Shares shall lapse on the first to occur of:

(i)    the last business day of any subsequent calendar year or years to the extent that the Limitation is not exceeded for such year or years;

(ii)    the date next following the Grantee’s termination of Service for any reason other than for Cause, or

(iii)    the first business day of the year next following the year with respect to which the Grantee ceases to be a Covered Officer.

The Company will make all determinations as to whether the lapse of restrictions on any Performance Shares is delayed in accordance with this Section.  Such determinations will be made on a uniform and non-discriminatory basis consistent with the requirements under Code Section 409A.

Section 5.  Delivery of Shares.  Once Performance Shares have vested under this Agreement, the Company will convert the Performance Shares in the Grantee’s Performance Share Account into Shares and 

deliver the total number of Shares due to the Grantee as soon as administratively possible after such date, but no later than March 15, 2017.    The delivery of the Shares shall be subject to payment of the applicable withholding tax liability and the forfeiture provisions of this Agreement.  If the Grantee dies before the Company has distributed any portion of the vested Performance Shares, the Company will transfer any Shares with respect to the vested Performance Shares in accordance with the Grantee’s written beneficiary designation or to the Grantee’s estate if no written beneficiary designation is provided.

Section 6.  Withholding of Taxes.  The Company shall have the power and the right to deduct or withhold, or require the Grantee to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Agreement.

Section 7.  Securities Law Compliance.  The delivery of all or any Shares that relate to the Performance Shares shall only be effective at such time that the issuance of such Shares will not violate any state or federal securities or other laws.  The Company is under no obligation to effect any registration of Shares under the Securities Act of 1933 or to effect any state registration or qualification of the Shares that may be issued under this Agreement. The Company may, in its sole discretion, delay the delivery of Shares or place restrictive legends on Shares in order to ensure that the issuance of any Shares will be in compliance with federal or state securities laws and the rules of any exchange upon which the Company’s Shares are traded.  If the Company delays the delivery of Shares in order to ensure compliance with any state or federal securities or other laws, the Company shall deliver the Shares at the earliest date at which the Company reasonably believes that such delivery will not cause such violation, or at such later date that may be permitted under Code Section 409A.

Section 8.  Restriction on Transferability.  Except as otherwise provided under the Plan, until the Performance Shares have vested under this Agreement, the Performance Shares granted herein and the rights and privileges conferred hereby may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated (by operation of law or otherwise), other than by will or the laws of descent and distribution.  Any attempted transfer in violation of the provisions of this paragraph shall be void, and the purported transferee shall obtain no rights with respect to such Performance Shares.

Section 9.  Grantee’s Rights Unsecured.  The right of the Grantee or his or her beneficiary to receive a distribution hereunder shall be an unsecured claim against the general assets of the Company, and neither the Grantee nor his or her beneficiary shall have any rights in or against any amounts credited to the Grantee’s Performance Share Account or any other specific assets of the Company.  All amounts credited to the Grantee’s Performance Share Account shall constitute general assets of the Company and may be disposed of by the Company at such time and for such purposes, as it may deem appropriate.
    
Section 10.  No Rights as Stockholder or Employee.

		
	(a)
	The Grantee shall not have any privileges of a stockholder of the Company with respect to any Performance Shares subject to this Agreement, nor shall the Company have any obligation to issue any dividends or otherwise afford any rights to which Shares are entitled with respect to any such Performance Shares. 

		
	(b)
	Nothing in this Agreement or the Award shall confer upon the Grantee any right to continue as an Employee of the Company or any Affiliate or to interfere in any way with the right of the Company or any Affiliate to terminate the Grantee’s Service at any time.

Section 11.  Adjustments.  If at any time while the Award is outstanding, the number of outstanding Performance Shares is changed by reason of a reorganization, recapitalization, stock split or any of the other events described in the Plan, the number and kind of Performance Shares shall be adjusted in accordance with the provisions of the Plan.  In the event of certain corporate events specified in Article XVI of the Plan, any unvested Performance Shares may be replaced by substituted Awards or forfeited in exchange for payment of cash in accordance with the procedures and provisions of Article XVI of the Plan.

Section 12.  Notices.  Any notice hereunder by the Grantee shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof at the following address: Corporate Secretary, NiSource Inc., 801 East 86th Avenue, Merrillville, IN 46410-6271, or at such other address as the Company may designate by notice to the Grantee.  

Any notice hereunder by the Company shall be given to the Grantee in writing and such notice shall be deemed duly given only upon receipt thereof at such address as the Grantee may have on file with the Company.

Section 13.  Administration.  The administration of this Agreement, including the interpretation and amendment or termination of this Agreement, will be performed in accordance with the Plan.  All determinations and decisions made by the Committee, the Board, or any delegate of the Committee as to the provisions of this Agreement shall be conclusive, final, and binding on all persons.  This Agreement at all times shall be governed by the Plan and in no way alter or modify the Plan.  To the extent a conflict exists between this Agreement and the Plan, the provisions of the Plan shall govern.  Notwithstanding the foregoing, if subsequent guidance is issued under Code Section 409A that would impose additional taxes, penalties, or interest to either the Company or the grantee, the Company may administer this Agreement in accordance with such guidance and amend this Agreement without the Consent of the Grantee to the extent such actions, in the reasonable judgment of the Company, are considered necessary to avoid the imposition of such additional taxes, penalties, or interest.

Section 14.  Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Indiana, without giving effect to the choice of law principles thereof.

Section 15.  Government Regulations.  Notwithstanding anything contained herein to the contrary, the Company’s obligation to issue or deliver certificates evidencing the Performance Shares shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

Section 16.  Entire Agreement; Code Section 409A Compliance.  This Agreement and the Plan contain the terms and conditions with respect to the subject matter hereof and supersede any previous agreements, written or oral, relating to the subject matter hereof.  This Agreement is pursuant to the terms of the Company’s 2010 Omnibus Incentive Plan (the “Plan”). The applicable terms of the Plan are incorporated herein by reference, including the definition of capitalized terms contained in the Plan, and including the Code Section 409A provisions of Section XIX of the Plan.  This Agreement shall be interpreted in accordance with Code Section 409A including the rules related to payment timing for specified employees.  This Agreement shall be deemed to be modified to the maximum extent necessary to be in compliance with Code Section 409A’s rules.  If the Grantee is unexpectedly required to include in the Grantee’s current year’s income any amount of compensation relating to the Performance Shares because of a failure to meet the requirements of Code Section 409A, then to the extent permitted by Code Section 409A, the Grantee may receive a distribution of Shares in an amount not to exceed the amount required to be included in income as a result of the failure to comply with Code Section 409A.

IN WITNESS WHEREOF, the Company has caused this Award to be granted, and the Grantee has accepted this Award, as of the date first above written.

NISOURCE INC                         GRANTEE

By:  ______________________                 By:   _____________________ 

Its:  ______________________

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