Document:

exv10w2

Exhibit 10.2

February 16, 2010

Ms. Eileen O’Neill Odum

3 Beach Drive

Dunes Acres, IN 46304

Dear Eileen:

This Letter Agreement confirms our agreement concerning your employment status. As we discussed,
you have decided to resign from your position of Executive Vice President and Group CEO of the
Northern Indiana Energy Group and all positions that you hold as an officer, manager or board
member at NiSource Inc., any subsidiary or affiliate of NiSource, Inc., or at any entity in which
NiSource Inc. holds an interest or investment, effective February 26, 2010 (the “Effective Date”).
However, you will continue your employment with the Company and provide the Company the benefit of
your experience and expertise. If you sign this Letter Agreement, it will constitute the mutual
agreement between you and NiSource Corporate Services Company (the “Company” which, as used
herein, shall also include NiSource Inc. or any of its affiliates or subsidiaries, including
NiSource Corporate Services Company; except in Exhibit 1, references to “NiSource” shall mean
exclusively NiSource Inc.) regarding your employment.

	1.	 	Employment Status

	 
	 	 	You will continue as a full-time active employee of the Company until the date of the earliest
of any of the following to occur (“Separation Date”): (a) the Company terminates your
employment for cause; (b) you end your employment with us; or (c) June 30, 2012 (or any other
date that is mutually agreed upon by you and the Company in writing). For purposes of this
Letter Agreement, “cause” shall mean: 1) your conviction of any criminal violation involving
dishonesty, fraud, or breach of trust; 2) the commission of any willful act constituting fraud
or breach of fiduciary duty to the Company and its shareholders which has an adverse impact on
the Company; 3) any act or omission by you that causes a regulatory body with jurisdiction over
the Company to demand, request or recommend that you be removed or suspended from your
employment with the Company; 4) your willful and material violation of the Company’s policies;
5) your substantial nonperformance of your material duties and responsibilities; or 6) a breach
of Paragraph 9 of this Letter Agreement. Before a termination of your employment for cause is
effective under item (5) above, the Company will provide you with prior written notice of the
circumstances giving rise to such termination and provide you with a reasonable opportunity to
cure.

	 
	 	 	During your employment, you will continue to receive base pay in the gross annualized amount of
$440,000.

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	 	 	During your employment, you will continue to participate in the NiSource Corporate Incentive
Plan in accordance with the terms of the plan, as it may be modified from year to year. For
each of 2010 and 2011, you will receive a minimum gross payment of $100,000.

	 
	 	 	As an active employee, you will be required to perform the services as necessary to continue as
a full-time active employee of the Company through the Separation Date, and you will continue
to be eligible for participation in the Company’s benefits plans in accordance with the terms
of those plans and applicable law.1 Your portion of any premiums for the respective
plans will continue to be payroll deducted and your cost, if any, to participate in such plans
shall be at the customary costs charged to senior executives of the Company.

	 
	2.	 	Transition and Ongoing Responsibilities

	 
	 	 	You are not required to be in the office on a daily basis after February 26, 2010, because we
believe that generally your ongoing responsibilities can be provided from your home office.
You agree to transition all the matters in which you are engaged as an officer and director of
the Company on February 26, 2010 to other Company personnel that we designate. During your
employment, at the direction of the Chief Executive Officer of NiSource, you will provide
executive level support, counsel, and advice in the areas including, but not limited to,
Indiana regulatory matters, NIE operations, governmental relations, and public affairs. The
Company will continue to provide you with administrative support necessary for you to perform
your employment services under this Letter Agreement.

	 
	 	 	As part of your transition services before and after the Separation Date, you agree, at the
request of the Company’s counsel, to prepare for, and provide testimony at trial or deposition
in any litigation in which the Company is involved. Your employment, retention and
compensation under this Letter Agreement will not be dependent on the outcome of any litigation
or the content of any testimony that you provide therein (other than the truthfulness thereof).

	 
	3.	 	Additional Payments

 

			
	           1   You will be eligible to continue to participate in
the Company’s plans concerning medical benefits, dental benefits, vision
benefits, EAP, life insurance, the Company’s pension plan, 401(k) plans,
Pension Restoration Plan, Savings Restoration Plan, Sick Pay Plan, Vacation
Plan, Long Term Disability Plan, and NiSource Inc. Executive Deferred
Compensation Plan. For purposes of each of these plans, your termination date
will be your Separation Date, and all payments under these plans will be based
upon the terms and conditions of these plans. You will also continue to be
eligible to receive financial planning and tax preparation services on the same
basis as you currently receive them.

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	 	 	In the event your employment with the Company continues through June 30, 2012, within fifteen
(15) business days after you execute the General Release attached hereto as Exhibit 1 (which
shall not be executed before June 30, 2012), you will receive a lump sum payment in the amount
of $100,000. This lump sum payment will be subject to legally mandated deductions for Social
Security and federal, state and local taxes. In addition, you will receive a lump sum payment
equivalent to 130% of 52 weeks of COBRA (as described in Paragraph 5) continuation coverage
premiums in lieu of any continued medical, dental, vision and other welfare benefits offered by
the Company.

	 
	4.	 	Vacation

	 
	 	 	As noted above, during your employment you will continue to participate in the NiSource
vacation plan. Upon the termination of your employment you will receive a lump sum payment
representing compensation for your accrued and unused vacation as of your Separation Date.
This payment will be subject to legally-mandated deductions for Social Security and federal,
state and local taxes, as well as deductions for any contributory benefit plans in which you
elect to continue participation.

	 
	5.	 	COBRA Coverage

	 
	 	 	You will continue to participate in the group health, dental, vision and other welfare plans as
a full-time active employee of the Company through your Separation Date, at which time your
coverage as an active employee will cease. At that time, the termination of your employment
will be a qualifying event under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”).
The Company will notify you and/or your dependents of the insurance coverage which you may
continue on a self-pay basis as provided by COBRA upon termination of your employment.

	 
	6.	 	Long Term Incentive Plan

	 
	 	 	You will continue to be treated as an active employee of the Company through the Separation
Date for purposes of the NiSource Inc. 1994 Long Term Incentive Plan, including the vesting of
any Restricted or Contingent Shares which vest on or before the Separation Date. In accordance
with the 1994 Long Term Incentive Plan and your agreements pursuant thereto, any Restricted or
Contingent Shares awarded which have not vested as of the Separation Date will be forfeited.

	 
	7.	 	Indemnification

	 
	 	 	During your employment with the Company and following the Separation Date, (a) you will remain
entitled to indemnification by the Company pursuant to its by-laws in effect as of the
Effective Date, notwithstanding any change made thereafter, except as such change may be
required by law and (b) you will also be entitled to coverage under the directors and officers
liability insurance policies maintained by the

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	 	 	Company (as in effect from time to time) to the same extent as other former officers of the
Company.

	 
	8.	 	Return of Property

	 
	 	 	You agree to return to the Company any and all of its property, including but not limited to,
keys, employee identification or security access cards, telephones, computing equipment, and
credit cards on or before the Separation Date.

	 
	9.	 	Confidentiality

	 
	 	 	You acknowledge that preservation of a continuing business relationship between the Company and
its respective customers, representatives, and employees is of critical importance to the
continued business success of the Company and that it is the active policy of the Company to
guard as confidential certain information not available to the public and relating to the
business affairs of the Company. In view of the foregoing, you agree that you shall not
disclose to any person or entity any such confidential information that was obtained by you in
the course of your employment by the Company without the prior written consent of the Company.
It will not be considered a violation of this Paragraph 9: if you are required to disclose
confidential information pursuant to applicable law, a court order, a governmental or
administrative directive or a lawful subpoena, provided you give the Company prompt notice that
you have been required to disclose confidential information prior to the disclosure thereof.

	 
	 	 	Moreover, you agree that upon termination of your employment, you will promptly deliver to the
Company all documentation and other materials relating to the Company’s business which are in
your possession or under your control, including customer and potential customer lists, product
lists, and marketing material, whether in written or electronic data form, and you will delete,
destroy or discard all copies of such confidential information remaining in your possession;
provided, however, that you will be able to keep a hard and electronic copy of your contact
list.

	 
	 	 	You further acknowledge and agree that the Company’s remedy in the form of monetary damages for
any breach by you of any of the provisions of this section may be inadequate and that, in
addition to any monetary damages for such breach, the Company shall be entitled to institute
and maintain any appropriate proceeding or proceedings, including an action for specific
performance and/or injunction.

	 
	10.	 	Release of Claims

	 
	 	 	In consideration of the payment and benefits described above, you, on behalf of yourself and
your heirs, executors, and administrators, fully and finally settle, release, and waive any and
all rights or claims you may have, known or unknown, under your employment agreement dated
November 20, 2007, and any and all claims, known or unknown, arising from any and all local,
state (including but not limited to the

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	 	 	Indiana Civil Rights Act), and federal civil, common, contractual and statutory law (including,
but not limited to, the Age Discrimination in Employment Act of 1967, Title VII of the Civil
Rights Act of 1964, the Americans with Disabilities Act of 1990, the Family and Medical Leave
Act of 1993 (“FMLA”), and the Employee Retirement Income Security Act of 1974, as those Acts
are amended), and equitable claims against the Company and all of its stockholders,
predecessors, successors, agents, directors, officers, employees, representatives, and
attorneys, occurring or arising prior to you signing this Letter Agreement.

	 
	 	 	You acknowledge that you have received all benefits under the FMLA, if any, to which you
believe you may be entitled. You represent that you are not aware of any facts in which a
claim under the FMLA could be brought.

	 
	 	 	You acknowledge and agree that this release is being given only in exchange for consideration
to which you are not otherwise entitled. The Company agrees that nothing in this Letter
Agreement waives or releases any claims you may have involving the enforcement of the terms and
conditions of this Letter Agreement, any of the Company’s employee benefit plans or any
incentive compensation award agreement between the Company and you.

	 
	11.	 	Special Release Notification Under the Age Discrimination and Employment Act

	 
	 	 	You understand and agree that this Agreement includes a release of all claims under the Age
Discrimination in Employment Act (“ADEA”) and, therefore, pursuant to the requirements of the
ADEA, you acknowledge that you have been advised: (a) this release includes, but is not
limited to, all claims under the ADEA arising up to and including the date of execution of this
release; (b) to consult with an attorney and/or other advisor of your choosing concerning your
rights and obligations under this release; (c) to consider fully this release before executing
it; (d) that you have been offered ample time and opportunity, in excess of twenty-one (21)
days, to do so; and (e) that this release shall become effective and enforceable seven (7) days
following executing of this Agreement by you, during which seven (7) day period you may revoke
your acceptance of this Agreement by delivering written notice to Robert D. Campbell, NiSource,
Inc., 801 E. 86th Avenue, Merrillville, IN 46410.

	 
	12.	 	Covenant Not To Assert Claims

	 
	 	 	You warrant that you have not initiated or filed any claims of any type against the Company
with any court or governmental or administrative agency and covenant that you will not do so in
the future with regard to any claim released herein nor will you voluntarily assist others in
doing so. This is not intended to waive any unwaivable right you may have to participate in
proceedings against the Company, but you agree to waive any relief which may be obtained from
such participation.

	 
	13.	 	Outstanding Charges

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	 	 	You hereby agree to pay the Company any outstanding amounts owed to the Company, and further
agree that by signing this agreement you hereby authorize the Company to deduct any outstanding
charges from your final payment.

	 
	 	 	The Company agrees to reimburse you for any business expenses that you incurred in the course
of your employment pursuant to the Company’s policies.

	 
	14.	 	Governing Law

	 
	 	 	This Letter Agreement shall be construed in accordance with the laws of Indiana.

	 
	15.	 	Severability

	 
	 	 	In the event that one or more of the provisions contained in this Letter Agreement shall for
any reason be held to be invalid, illegal or unenforceable in any respect, the Company shall
have the option to enforce the remainder of this Letter Agreement or to cancel it.

	 
	16.	 	Non-Disclosure and Non-Disparagement

	 
	 	 	You expressly agree that you will keep the terms of this Letter Agreement strictly confidential
and that you will not disclose the terms of this Letter Agreement to anyone other than your
spouse, your legal counsel or your tax advisor, provided that they each agree to preserve the
confidentiality of the terms of this Letter Agreement, except to the extent that disclosure is
required (a) by law, subpoena, order of court or other governmental or administrative
directive, compliance with which is mandatory, or (2) to enforce your rights under this Letter
Agreement, any of the Company’s employee benefit plans or any incentive compensation agreement.

	 
	 	 	Nothing herein should be construed as a limitation on your ability to consult with your counsel
or with an administrative agency.

	 
	 	 	You agree not to disparage the Company or portray it in a negative light.

	 
	17.	 	Compliance with 409A of the Internal Revenue Code

	 
	 	 	You and the Company will administer this agreement so as to comply with the requirements of
Section 409A of the Internal Revenue Code.

	 
	18.	 	Complete Agreement

	 
	 	 	You acknowledge that in accepting this Letter Agreement, you have not relied upon any
representation or promise other than those expressly stated in this Letter Agreement.

	 
	 	 	This Letter Agreement and the documents specifically referred to herein constitute the complete
understanding between you and the Company relating to your

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	 	 	separation and supersedes any and all prior agreements, promises, representations or
inducements, no matter their form, concerning your employment with the Company. No promises or
agreements made subsequent to the execution of this Agreement by these parties shall be binding
unless reduced to writing and signed by authorized representatives of these parties. This
Letter Agreement may not be amended or modified except by a writing signed by the Company and
you.

	 
	19.	 	Important Information

	 
	 	 	You acknowledge that the Company has advised you take up to 21 days to consider the terms and
conditions outlined above, and that the Company has also advised you to consult an attorney
before signing this Letter Agreement. You also have the right to revoke your execution of this
Letter Agreement within 7 days after execution in accordance with the Notice To Employee
attached hereto.

	 
	 	 	If you accept the terms and conditions outlined above, including Paragraph 10, please sign both
copies of this Letter Agreement in the space provided below to signify your acceptance, and
return both copies to Robert D. Campbell by March 9, 2010, on which date this offer will expire
if not accepted. If you accept the terms and conditions outlined above, your acceptance is in
lieu of any and all other severance programs offered by the Company and you knowingly and
voluntarily waive participation in all other severance programs offered by the Company. You
acknowledge that the Company’s performance under this Letter Agreement and under the employee
benefit plans and incentive compensation award agreements referenced herein constitutes full
and complete payment of all amounts due to you from the Company and constitutes additional
consideration to which you are not otherwise entitled.

Very truly yours,

/s/ Robert D. Campbell

Robert D. Campbell

Sr. Vice President

Human Resources

Accepted:

			
	 	 	 
	/s/ Eileen O’Neill Odum
	 	Date: February 16, 2010
	Eileen O’Neill Odum	 	 

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EXHIBIT 1

GENERAL RELEASE

Attn: This General Release Should Not Be Signed Prior to June 30, 2012

          In consideration of the payments and benefits set forth in the Letter Agreement attached
hereto, the sufficiency of which consideration is hereby acknowledged, I, for myself and my heirs,
executors and administrators, do hereby fully, finally and unconditionally release and forever
discharge NiSource Inc., and all of its parent, sister and subsidiary corporations and all of its
affiliates, as well as all of its former and current directors, officers, employees, stockholders,
attorneys, agents, predecessors, successors and assigns, in their personal and corporate capacities
(hereinafter “Released Parties”), from any and all liabilities, actions, causes of action, claims,
rights, obligations, charges, damages, costs, attorneys’ fees, suits, re-employment rights and
demands of any and every kind, nature, and character, known and unknown, liquidated or
unliquidated, absolute or contingent, in law or in equity, enforceable under and local, state, or
federal statute or ordinance, or under the common laws of the United States, from the beginning of
time to the date of this General Release, including but not limited to, all claims relating to the
Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C.§ 621 et seq. and the specific
statutes referred to in footnote 1 2, any and all claims relative to any agreement
relating to my employment with the Released Parties, including any claims under the doctrines of
defamation, libel, slander, invasion of privacy, intentional infliction of emotional distress,
interference with contractual relations, retaliatory discharge, whistleblowing, breach of contract,
wrongful discharge, breach of implied contract or implied covenant of good faith or fair dealing,
and any other statute, authority or law, providing a cause of action relating to my employment with
or the termination of my employment with the Released Parties, provided, however, that this release
does not affect, release or waive any of my claims for payment or benefits under the Letter
Agreement to which this General Release is attached as Exhibit 1 or any employee benefit plans or
incentive compensation award agreements referenced therein. I also agree not to sue the Released
Parties with respect to the claims covered by the foregoing General Release.

               I acknowledge that prior to entering into the Letter Agreement to which this General Release
is attached and made a part of, I was advised in writing to consult with an attorney prior to
executing the Letter Agreement and that I was given a period of at least twenty-one (21) days
within which to consider the Letter Agreement, including

 

			
	          2   Title VII of the Civil Rights Act of 1964,
as amended, 42 U.S. C. § 2000e et seq.; the Employee Retirement
Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the
Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; the
Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §
12101 et seq.; the Family and Medical Leave Act of 1993, 29 U.S.C. §
2601 et. seq.; the Fair Labor Standards Act, as amended, 29 U.S.C. §
201 et seq.; the Civil Rights Act of 1866, 42 U.S.C. § 1981 et seq.;
the Worker Adjustment Retraining Notification Act, 29 U.S.C. 2101§ et
seq.; the Occupational Safety and Health Act, 29 U.S.C. § 651 et
seq.; the Corporate and Criminal Fraud Accountability Act of 2002; Title VII of
the Sarbanes Oxley Act of 2002; and the Indiana Civil Rights Act.

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the terms of this General Release. Moreover, I was advised in writing of my right, for seven
(7) days following my execution of the Letter Agreement, to revoke the Letter Agreement and thereby
decline to execute this General Release by giving notice of revocation to Robert D. Campbell,
NiSource, Inc., 801 E. 86th Avenue, Merrillville, IN 46410. I expressly represent that I did not
revoke the Letter Agreement. Accordingly, I acknowledge and agree that the Letter Agreement is
effective and enforceable.

          I hereby represent that I have read and understand the terms of this General Release and
represent that my execution of this General Release constitutes my knowing and voluntary act, made
without coercion or intimidation. I understand that this General Release in applicable to any
claims arising prior to the date of this General Release and is binding upon me, my heirs,
executors and assigns.

                                        

Eileen O’Neill Odum

Date:                     

                                        

Witness’ Signature

Date:                    

-9-exv10w3

Exhibit 10.3

			
	 
	 	 	 
	POLICY
SUBJECT:

	 	Executive
Severance Policy

	 
	EFFECTIVE
DATE:

	 	June 1,
2002

	 
	REVISED:

	 	January 1,
2010

	1.	 	Purpose. The NiSource Executive Severance Policy (“Policy”) was established
to provide Severance Pay and other benefits to terminated executive-level employees of
NiSource Inc. and certain subsidiaries and affiliate corporations (“Company”) who satisfy the
terms of the Policy. Benefits under the Policy shall be in lieu of any benefits available
under the NiSource Severance Policy or any other severance plan or policy maintained by the
Company or any Affiliate; provided however that benefits will not be payable under the Policy
if the relevant termination of employment results in the employee being eligible for a payment
under a Change in Control and Termination Agreement. The Policy is amended and restated
effective January 1, 2010.

	 
	2.	 	Administration. The Policy is administered by the Officer Nomination and
Compensation Committee of the Board of Directors of the Company (“Committee”). The Committee
has the complete discretion and authority with respect to the Policy and its application. The
Committee reserves the right to interpret the Policy, prescribe, amend and rescind rules and
regulations relating to it, determine the terms and provisions of severance benefits and make
all other determinations it deems necessary or advisable for the administration of the Policy.
The determination of the Committee in all matters regarding the Policy shall be conclusive
and binding on all persons. The Committee may delegate any of its duties under the Policy to
the Senior Vice President of Human Resources.

	 
	3.	 	Scope. The Policy will apply to all full-time or part-time regular, non-union
employees of the Company and each of its affiliated entities (collectively, “Affiliates” and
each an “Affiliate”) whose job scope level, as established by the Company, is D2 (or its
equivalent) or above (“Participants”).

	 
	4.	 	Eligibility for Severance Pay. A Participant becomes entitled to receive
severance pay (“Severance Pay”) only if he or she is terminated by an Affiliate for any of the
following reasons, and the conditions described in Section 5
below are met:

	 	(a)	 	The Participant’s position is eliminated due to a reduction in force or other
restructuring.

	 
	 	(b)	 	The Participant’s position is moved by the Company more than 50 miles from its
current location and results in the Participant having a longer commute of at least 20
miles and the Participant chooses not to relocate.

	 
	 	(c)	 	The Participant’s employment is constructively terminated. Constructive
termination means (1) the scope of the Participant’s position is changed materially or
(2) the Participant’s base pay is reduced by a material
amount or

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	 	 	 	(3) the Participant’s opportunity to earn a bonus under a short-term cash incentive
compensation plan of the Affiliates is materially reduced or is eliminated, and, in
any such event, the Participant chooses not to remain employed in such position. If
a Participant does not assert constructive termination within 14 days of being
informed of a change described in (1), (2) or (3) above, in a written instrument
delivered to the Senior Vice President of Human Resources, such change will not be
deemed a constructive termination. The decision as to whether such a change
constitutes constructive termination shall be made by the Committee, not the
Participant. If the Participant disagrees, the Participant must follow the claims
procedure set forth in Section 14.

	5.	 	Conditions
to Receipt of Benefits.

	 	(a)	 	Severance Pay is not available to a Participant otherwise eligible for
Severance Pay who transfers to another position with any
Affiliate.

	 
	 	(b)	 	Severance Pay is not available to a Participant whose position is eliminated
due to (1) the sale of the Affiliate or assets of the Affiliate which employs the
Participant on the date of termination or (2) the outsourcing of work, where in either
such event the purchaser of the Affiliate or assets of the Affiliate or the outsourcing
service provider makes an offer of employment to the Participant that, if it were an
Affiliate, would not constitute “constructive termination” as described in
Section 4(c).

	 
	 	(c)	 	During the period in which a Participant is entitled to consider the execution
of the release described in Section 6, or during such other period as is otherwise
agreed to by the Company and the Participant, he or she may be required to complete
unfinished business projects and be available for discussions regarding matters
relative to the Participant’s duties.

	 
	 	(d)	 	A
Participant must return all Affiliate property and information to the
Affiliate.

	 
	 	(e)	 	A Participant must agree to pay all outstanding amounts owed to any Affiliate
and authorize the Affiliate to withhold any outstanding amounts from his or her final
paycheck and/or Severance Pay.

	6.	 	Amount of Severance Pay. The amount of Severance Pay to which a Participant
is entitled under the Policy is 52 weeks of base salary at the rate in effect on the date of
termination.

	 
	 	 	A Participant who is receiving benefits under a short term disability plan maintained by any
Affiliate will be entitled to Severance Pay at the end of the period of payment of short
term disability if, and only if, (1) he or she is not then eligible for benefits under a
long term disability plan maintained by an Affiliate, and (2) he or she is not offered
employment with an Affiliate that, in the discretion of the Committee, is comparable to that
held by the Participant at the time the applicable period of short term disability
commenced. A Participant will not be entitled to Severance Pay at the end of the period of
long term disability.

	 
	 	 	Severance Pay will be paid to a Participant in one lump sum cash payment. Payment will be
made as soon as practicable after the last to occur of (1) the
date of the

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	 	 	Participant’s termination of employment, (2) the effective date of the Participant’s release
of (i) the Affiliates, and their respective officers, directors and employees, from any and
all actions, suits, proceedings, claims and demands relating to the Participant’s employment
with the Affiliates and the termination thereof, and (ii) all rights and benefits required
under the NiSource Severance Policy or any other severance policy or plan maintained by any
Affiliate, and (3) the satisfaction of the conditions described in clauses (c), (d) and (e)
of Section 5. Severance Pay shall be reduced by applicable amounts necessary to comply with
federal, state and local income tax withholding
requirements.

	 
	7.	 	Benefits.

	 	(a)	 	Welfare Benefits. A Participant entitled to Severance Pay shall
receive, at the time of payment of Severance Pay, a lump sum payment equivalent to 130%
of 52-weeks of COBRA (as defined in Section 4980B of the Internal Revenue Code of 1986,
as amended, and Sections 601-609 of the Employee Retirement Income Security Act of
1974, as amended, or any successor sections) continuation coverage premiums in lieu of
any continued medical, dental, vision, and other welfare benefits offered by the
Company or any Affiliate. Such 52-week period of COBRA continuation coverage shall be
included as part of the period during which the Participant may elect continued group
health coverage under COBRA.

	 
	 	(b)	 	Outplacement Services. A Participant entitled to Severance Pay shall
receive outplacement services, selected by the Company at its expense, for a period
commencing on the date of termination of employment and continuing until the earlier to
occur of the Participant accepting other employment or 12 months
thereafter.

	8.	 	Independent Contractor Status. A Participant who receives benefits pursuant
to the Policy shall not be eligible at any time after termination of employment to enter into
a consulting or independent contractor relationship with any Affiliate pursuant to which
relationship he or she shall perform the same or similar services, upon the same or similar
terms and conditions, as were applicable to such Participant on the date of termination of
employment.

	 
	9.	 	Death of Participant. If a Participant dies prior to receiving Severance Pay
to which he or she is entitled under the Policy, payment will be made to the representative of
his or her estate.

	 
	10.	 	Term of Policy. The term of the Policy, as amended and restated herein, will
commence on January 1, 2010 and will expire on December 31,
2011.

	 
	11.	 	Amendment
or Termination.

	 	(a)	 	The Policy may be amended or terminated by the Committee at any time during
its term when, in its judgment, such amendment or termination is necessary or
desirable. No such termination or amendment will affect the rights of any Participant
who is then entitled to receive Severance Pay or other benefits under the Policy at the
time of such amendment or termination. The Policy can only be changed by written
endorsement by an officer of the Company and only when the

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	 	 	 	Company attaches the written amendment to the Policy. No agent or other employee,
other than an officer of the Company, has the authority to change or waive any
provision of the Policy.

	 
	 	(b)	 	Severance
benefits under the Policy are not intended to be a vested
right.

	12.	 	Governing Law. The terms of the Policy shall, to the extent not preempted by
federal law, be governed by, and construed and enforced in accordance with, the laws of the
State of Indiana, including all matters of construction, validity and
performance.

	 
	13.	 	Miscellaneous
Provisions.

	 	(a)	 	Severance Pay and other benefits pursuant to the Policy shall not be subject
in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge prior to actual receipt by a Participant, and any attempt to so
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge prior to such
receipt shall be void and no Affiliate shall be liable in any manner for, or subject
to, the debts, contracts, liabilities, engagements or torts of any person entitled to
any Severance Pay or other benefits under the Policy.

	 
	 	(b)	 	Nothing contained in the Policy shall confer upon any individual the right to
be retained in the service of any Affiliate, nor limit the right of any Affiliate to
discharge or otherwise deal with any individual without regard to the existence of the
Policy.

	 
	 	(c)	 	The Policy shall at all times be entirely unfunded. No provision shall at any
time be made with respect to segregating assets of any Affiliate for payment of any
Severance Pay or other benefits hereunder. No employee or any other person shall have
any interest in any particular assets of any Affiliate by reason of the right to
receive Severance Pay or other benefits under the Policy, and any such employee or any
other person shall have only the rights of a general unsecured creditor of an Affiliate
with respect to any rights under the Policy.

	14.	 	Claims Procedure. If a claim for benefits under the Policy by a Participant
or his or her beneficiary is denied, either in whole or in part, the Committee will let the
claimant know in writing within 90 days. If the claimant does not hear within 90 days, the
claimant may treat the claim as if it had been denied. A notice of a denial of a claim will
refer to a specific reason or reasons for the denial of the claim; will have specific
references to the Policy provisions upon which the denial is based; will describe any
additional material or information necessary for the claimant to perfect the claim and explain
why such material information is necessary; and will have an explanation of the Policy’s
review procedure.

	 
	 	 	The claimant will have 60 days after the date of the denial to ask for a review and a
hearing. The claimant must file a written request with the Committee for a review. During
this time the claimant may review pertinent documents and may submit issues and comments in
writing. The Committee will have another 60 days in which to consider the claimant’s
request for review. If special circumstances require an extension of time for processing,
the Committee may have an additional 60 days to answer the claimant. The claimant will
receive a written notice if the extra days are needed. The claimant may submit in writing
any document, issues and comments he or she may wish. The

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	 	 	decision of the Committee will tell the claimant the specific reasons for its actions, and
refer the claimant to the specific Policy provisions upon which its decision is based.

	 
	15.	 	Rights Under ERISA. Each Participant in the Policy is entitled to certain
rights and protection under the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). ERISA provides that all Policy Participants
shall be entitled to:

	 	(a)	 	Examine, without charge, at the Company’s office all Policy documents.

	 
	 	(b)	 	Obtain copies of all Policy documents and other Policy information upon
written request to the Committee. The Committee may make a reasonable charge for the
copies.

	 
	 	In addition to creating rights for Policy Participants, ERISA imposes duties upon the people
who are responsible for the operation of an employee benefit plan. The people who operate
the Policy, called “fiduciaries” of the Policy, have a duty to do so prudently and in the
interest of the Policy Participants and beneficiaries. No one, including the Company, any
affiliate or any other person, may fire a Participant or otherwise discriminate against a
Participant in any way to prevent him or her from obtaining a benefit or exercising his or
her rights under ERISA. If a Participant’s claim for a benefit is denied in whole or in
part, he or she must receive a written explanation of the reason for the denial. A
Participant has the right to have the Committee review and reconsider his or her claim.
Under ERISA, there are steps a Participant can take to enforce the above rights. For
instance, if a Participant requests materials from the Committee and does not receive them
within thirty (30) days, he or she may file suit in a federal court. In such a case the
court may require the Committee to provide the materials and pay the Participant up to
$110 a day until the Participant receives the materials, unless the materials were not sent
because of reasons beyond the control of the Committee. If a Participant has a claim for
benefits, which is denied or ignored, in whole or in part, he or she may file suit in a
state or federal court. If it should happen that the Policy fiduciaries misuse the Policy’s
money, or if a Participant is discriminated against for asserting his or her rights, he or
she may ask assistance from the United States Department of Labor, or he or she may file
suit in a federal court. The court will decide who should pay the court costs and legal
fees. If the Participant is successful, the court may order the person he or she has sued
to pay these costs and fees. If the Participant loses, the court may order him or her to
pay these costs and fees, for example, if it finds his or her claim to be frivolous. If a
Participant has questions about the Policy, he or she should contact the Committee. If a
Participant has any questions about this statement or about his or her rights under ERISA,
he or she should contact the nearest Area Office of the United States Labor-Management
Services Administration, Department of Labor.

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	16.	 	Policy
Facts:

	 	 	 	 	 	 
	 	Company:
Address:
	 	 	NiSource Inc.
801 E. 86th Avenue
Merrillville, Indiana  46410	 
	 	Plan Name:
	 	 	NiSource Executive Severance Policy	 
	 	Type of Plan:
	 	 	Severance Policy-Welfare Benefits Plan	 
	 	Policy Year:
	 	 	Calendar year	 
	 	Employer Identification Number (EIN):
	 	 	35-1719974	 
	 	Policy Administrator:
	 	 	Officer Nomination and Compensation
Committee of NiSource Inc.	 
	 	Business Address:
	 	 	801 E. 86th Avenue
Merrillville, Indiana  46410	 
	 	Agent for Service of Legal Process:
	 	 	Officer Nomination and Compensation
Committee of NiSource Inc.	 
	 	(Address)
	 	 	801 E. 86th Avenue
Merrillville, Indiana  46410	 
	 

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