Document:

diod-ex10802_393.htm

EXHIBIT 10.80.2

 

Execution Version

AMENDMENT NO. 2 to AMENDED AND RESTATED Credit Agreement 

 

THIS AMENDMENT NO. 2 TO AMENDED AND RESTATED CREDIT AGREEMENT dated as of August 24, 2017 (this “Agreement”) is entered into among DIODES INCORPORATED, a Delaware corporation (the “Domestic Borrower”), DIODES INTERNATIONAL B.V., a besloten vennootschap met beperkte aansprakelijkheid organized under the laws of the Netherlands, having its statutory seat in Amsterdam, the Netherlands and registered with the trade register of the Chambers of Commerce in the Netherlands under number 34274981 (the “Foreign Borrower” and together with the Domestic Borrower, the “Borrowers” and each, individually, a “Borrower”), certain Subsidiaries of the Domestic Borrower identified on the signature pages hereto as subsidiary guarantors (the “Subsidiary Guarantors”), the Lenders identified on the signature pages hereto and BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”).

 

PRELIMINARY STATEMENTS

The Borrowers, Subsidiary Guarantors, the Lenders and the Administrative Agent are parties to that certain Amended and Restated Credit Agreement dated as of October 26, 2016, as amended by that certain Amendment No. 1 to Amended and Restated Credit Agreement and Limited Waiver dated as of February 13, 2017 (as further amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”).

On or about March 1, 2017, Diodes Taiwan Incorporated, a corporation organized under the laws of Taiwan (“DTI”), merged into Diodes Taiwan SARL, an entity organized under the laws of Luxembourg (“DTSARL”), with DTSARL being the surviving entity and continuing to operate in Taiwan.  The Borrowers have advised that before the merger, DTSARL had no operations or operating assets; thus, the post-merger entity is the same business as DTI, now organized as an SARL under Luxembourg law.

The Borrowers have requested that the Administrative Agent and the Lenders agree to amend the Credit Agreement to allow DTSARL to utilize the exception to the Indebtedness negative covenant set forth in Section 7.02(g) previously available to DTI as a Subsidiary organized under the laws of a jurisdiction in Asia.  Subject to the terms and conditions set forth herein, the Administrative Agent and each of the Lenders party hereto have agreed to grant such requests of the Borrowers.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Defined Terms.  Except as otherwise provided herein, all capitalized undefined terms used in this Agreement (including, without limitation, in the introductory paragraph and the preliminary statements hereto) shall have the meanings assigned thereto in the Credit Agreement.

2.Credit Agreement Amendment. 

Section 7.02(g) of the Credit Agreement is hereby amended and restated as follows:

(g)Indebtedness of Subsidiaries (inclusive of the Indebtedness of such Subsidiaries set forth on Schedule 7.02) organized under the laws of a jurisdiction in Asia and of Diodes Taiwan SARL, an entity organized under the laws of Luxembourg, in an aggregate amount not to exceed $70,000,000 at any time, all of which may be refinanced, amended or replaced from time to time; provided that the aggregate amount of such Indebtedness does not exceed $70,000,000; 

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3.Conditions to Effectiveness.  This Agreement shall be effective upon the Administrative Agent's receipt of the following, each of which shall be originals or electronic images in a portable document format (e.g. “.pdf” or “.tif”) (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated the date hereof (the first date all the conditions precedent in this Section 4 are satisfied or waived in accordance with Section 11.01 of the Credit Agreement (the “Second Amendment Effective Date”)) and each in form and substance reasonably satisfactory to the Administrative Agent and each of the Required Lenders: 

(a)executed counterparts of this Agreement signed by the Borrowers, the Guarantors, the Administrative Agent and the Required Lenders; and

(b)such other assurances, certificates, documents, consents or opinions as the Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required Lenders reasonably may require.

Without limiting the generality of the provisions of the last paragraph of Section 9.03 of the Credit Agreement, for purposes of determining compliance with the conditions specified in this Section 4, the L/C Issuer and each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Second Amendment Effective Date specifying its objection thereto.

4.Effect of this Agreement.  Except as expressly provided herein, the Credit Agreement, the Collateral Agreement and the other Loan Documents shall remain unmodified and in full force and effect.  Except as expressly set forth herein, this Agreement shall not be deemed (a) to be a waiver of, or consent to a modification of or amendment of, any other term or condition of the Credit Agreement, the Collateral Agreement or any other Loan Document, (b) to prejudice any other right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or in connection with the Credit Agreement, the Collateral Agreement or the other Loan Documents or any of the instruments or agreements referred to therein, as the same may be amended, restated, supplemented or otherwise modified from time to time, (c) to be a commitment or any other undertaking or expression of any willingness to engage in any further discussion with the Borrowers or any other Person with respect to any waiver, amendment, modification or any other change to the Credit Agreement, the Collateral Agreement or the other Loan Documents or any rights or remedies arising in favor of the Lenders or the Administrative Agent, or any of them, under or with respect to any such documents or (d) to be a waiver of, or consent to a modification or amendment of, any other term or condition of any other agreement by and among any Loan Party, on the one hand, and the Administrative Agent or any other Lender, on the other hand.  References in this Agreement to the Credit Agreement (and indirect references such as “hereunder”, “hereby”, “herein”, and “hereof”) and in any Loan Document to the Credit Agreement shall be deemed to be references to the Credit Agreement as modified hereby.  

5.Representations and Warranties/No Default.  By their execution hereof, each Loan Party hereby represents and warrants as follows:

(a)Such Loan Party has the right, power and authority and has taken all necessary corporate and other action to authorize the execution and delivery of, and the performance in accordance with their respective terms of the transactions consented to in, this Agreement and each other document executed in connection herewith to which it is a party.

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(b)This Agreement and each other document executed in connection herewith has been duly executed and delivered by its duly authorized officers, and each such document constitutes the legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies.

(c)Each of the representations and warranties set forth in the Credit Agreement and the other Loan Documents is true and correct as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01 of the Credit Agreement. 

(d)No Default or Event of Default has occurred or is continuing (after giving effect to this Agreement) nor would any Default or Event of Default result after giving effect to this Agreement and the transactions contemplated hereby.

(e)No Loan Party is an EEA Financial Institution.

6.Reaffirmations.  (a) Each Loan Party agrees that the transactions contemplated by this Agreement shall not limit or diminish the obligations of such Person under, or release such Person from any obligations under, the Credit Agreement (including the Guaranty), the Collateral Agreement and each other Loan Document to which it is a party, (b) each Loan Party confirms, ratifies and reaffirms its obligations under the Credit Agreement (including the Guaranty), the Collateral Agreement and each other Loan Document to which it is a party, and (c) each Loan Party agrees that, except as otherwise expressly agreed in this Agreement, the Credit Agreement (including the Guaranty), the Collateral Agreement and each other Loan Document to which it is a party remain in full force and effect and are hereby ratified and confirmed.

7.Confirmation as to Dutch Collateral Documents.  Reference is made to (i) that certain Deed of Pledge of Shares dated October 20, 2016, among the Domestic Borrower, Pericom Semiconductor Corporation and Diodes Investment Company, as pledgors, Bank of America, N.A. as pledgee and Diodes Holding B.V., a besloten vennootschap met beperkte aansprakelijkheid (private limited company) incorporated under the laws of the Netherlands, having its statutory seat in Amsterdam, the Netherlands, and registered with the trade register of the Chambers of Commerce in the Netherlands under number 6523060 (“Dutch NewCo”), as company (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “NewCo Dutch Share Pledge”), (ii)  that certain Deed of Pledge of Shares dated July 21, 2016, among Dutch NewCo, as pledgor, the Administrative Agent as pledgee and the Foreign Borrower as company (the “Foreign Borrower Dutch Share Pledge”), (iii) that certain omnibus pledge agreement dated 8 January 2013, between the Foreign Borrower as pledgor and Bank of America, N.A. as pledgee (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Foreign Borrower Omnibus Pledge Agreement”) and (iv) that certain omnibus pledge agreement dated July 18, 2016, between Dutch NewCo as pledgor and Bank of America, N.A. as pledgee (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Dutch NewCo Omnibus Pledge Agreement”, together with the Foreign Borrower Omnibus Pledge Agreement, the Foreign Borrower Dutch Share Pledge and the NewCo Dutch Share Pledge, the “Dutch Collateral Documents”).  Each party to the Dutch Collateral Documents hereby confirms that:

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(a)the Credit Agreement (as amended by this Agreement), and the other Loan Documents will remain in full force and effect and any reference in the Loan Documents to the Credit Agreement or to any provision of the Credit Agreement will be construed as a reference to the Credit Agreement, or that provision, as amended by this Agreement;

(b)notwithstanding the amendments made to the Credit Agreement pursuant to this Agreement, the Dutch Collateral Documents and the security interests created thereunder will remain in full force and effect and will continue to secure all liabilities which are expressed to be secured by them and the rights of the Loan Parties under such security interest will not be affected by this Agreement;

(c)any amount owed by any Borrower under this Agreement and the Credit Agreement (as amended by this Agreement) is part of (i) the definition of Secured Obligations (as included/defined in the Dutch Collateral Documents) and (ii) each Loan Party’s Parallel Debts (as included/defined in the Credit Agreement); and

(d)at the time of the entering into the Dutch Collateral Documents, it was their intention that the security rights created pursuant to the Dutch Collateral Documents would secure the Foreign Obligations as they may be amended, restated, supplemented or otherwise modified from time to time, including amendments to the Credit Agreement and the Loan Documents such as the amendments to be effected by this Agreement.   

8.Miscellaneous

(a)Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  Without limiting the general applicability of the foregoing and the terms of the other Loan Documents to this Agreement and the parties hereto, the terms of Section 11.14 and Section 11.15 of the Credit Agreement are incorporated herein by reference, mutatis mutandis.

(b)Loan Document.  This Agreement shall constitute a “Loan Document” under and as defined in the Credit Agreement.

(c)Counterparts; Electronic Execution.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Agreement.  

(d)Severability.  If any provision of this Agreement is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

(e)Entirety.  This Agreement, the other Loan Documents and the other documents relating to the Obligations represent the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Loan Documents, any other documents relating to the Obligations, or the transactions contemplated herein and therein.

(f)Netherlands Law. If the Foreign Borrower and/or Dutch NewCo is represented by an attorney in connection with the signing and/or execution of this Agreement or any other agreement, 

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deed or document referred to in or made pursuant to this Agreement, it is hereby expressly acknowledged and accepted by the other parties to this Agreement that the existence or extent of the attorney’s authority and the effects of the attorney’s exercise or purported exercise of his or her authority shall be governed by the laws of the Netherlands.

[Remainder of page intentionally blank.]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

DOMESTIC BORROWER:

 

DIODES INCORPORATED

 

By:  /s/ Richard D. White

 

Name:Richard D. White

 

Title:Chief Financial Officer

 

FOREIGN BORROWER:

 

DIODES INTERNATIONAL B.V.

 

By:  /s/ Richard D. White

 

Name: Richard D. White

 

Title:Managing Director A

By:  /s/ B. B. Faber

 

Name: B. B. Faber 

 

Title:Managing Director B

 

SUBSIDIARY GUARANTORS:

 

DIODES INVESTMENT COMPANY

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Chief Financial Officer

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

 

 

DIODES FABTECH INC.

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Director

 

DIODES HOLDINGS UK LIMITED

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Director

 

DIODES ZETEX LIMITED

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Director

PERICOM SEMICONDUCTOR CORPORATION

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Chief Financial Officer and Secretary

 

 

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

 

 

DIODES HOLDING B.V.

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:  Managing Director A

 

 

 

 

By:  /s/ B. B. Faber

 

Name: B. B. Faber

Title:  Managing Director 

 

 

 

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

 

 

BANK OF AMERICA, N.A.,

as Administrative Agent

 

 

By:  /s/ Mollie S. Canup

 

Name:  Mollie S. Canup

 

Title:Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

BANK OF AMERICA, N.A., 

as a Lender, L/C Issuer and Swing Line Lender

 

By:  /s/ Jennifer Yan

 

Name:  Jennifer Yan

 

Title:Senior Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

COMPASS BANK, 

as a Lender

By:  /s/ Jay S. Tweed

 

Name:  Jay S. Tweed

 

Title:SVP

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

CITIBANK, N.A.,

as a Lender

 

 

By:  /s/ D. Sowards

 

Name:  Debbie Sowards

 

Title:Senior Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

BMO HARRIS BANK N.A.,

as a Lender

By:  /s/ Josh Hovermale

 

Name:  Josh Hovermale

 

Title:Director

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

REGIONS BANK,

as a Lender

By:  /s/ Mohamed Saadalla

 

Name:  Mohamed Saadalla

 

Title:Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

SILICON VALLEY BANK,

as a Lender

By:  /s/ Robert Clouse

 

Name:  Robert Clouse

 

Title:Director

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

CAPITAL ONE, N.A.,

as a Lender

By:  /s/ Richard O’Neill

 

Name:  Richard O’Neill

 

Title:Managing Director

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

COMERICA BANK,

as a Lender

By:  /s/ John Smithson

 

Name:  John Smithson

 

Title:Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

MUFG UNION BANK, N.A.,

as a Lender

By:  /s/ Lillian Kim

 

Name:  Lillian Kim

 

Title:Director

 

 

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated 

 

WELLS FARGO BANK, N.A.,

as a Lender

By:  /s/ Mitsoo Iravani

 

Name:  Mitsoo Iravani

 

Title:Sr. Vice Presdent

 

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes IncorporatedExhibit

NiSource Inc.
2010 Omnibus Incentive Plan

Performance Share Award Agreement

This Performance Share Award Agreement (the “Agreement”), is made and entered into as of [__________] (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 [________], and ending on [________].  

Section 4.  Performance Goals.  

		
	(a)
	Satisfaction of Performance Goals.  If the Company’s cumulative “net operating earnings” per Share for the Performance Period meets or exceeds [________] (the “Threshold Performance Requirement”), and the Committee certifies to this result in accordance with subsection (b) below, the Performance Shares will be eligible to vest as provided below.  If the Company’s cumulative “net operating earnings” per Share for the Performance Period does not meet or exceed [________] all Performance Shares will be forfeited as of the end of the Performance Period.

		
	(b)
	Committee Certification.  As soon as practicable after the end of the Performance Period, the Committee will certify in writing whether the Threshold Performance Requirement has been met for the Performance Period and determine the number of Shares, if any, that will be payable to the Grantee.  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 the number of Shares payable in accordance with the Committee’s certification and the terms of this Agreement.    

Section 5. Vesting.  If the Threshold Performance Requirement for the Performance Period has been met, and the Committee certifies to this result as provided in Section 4(b), the number of Performance Shares earned and vested shall be determined as follows:

		
	(a)
	[________] shall be eligible to vest based on the achievement of cumulative “net operating earnings” per Share for the Performance Period in accordance with the following results (including interpolation between the trigger, target and stretch goals, expressed as a percentage of the target) (“Cumulative NOEPS Shares”), provided that the Grantee remains in the continuous employment with the Company through [________]:

Cumulative Net            Vesting 
Operating Earnings            Percentage
Per Share                

		
	(i)
	The number of Cumulative NOEPS Shares determined above shall be increased or decreased (“TSR Adjustment”) based on the Company’s Relative Total Shareholder Return (“RTSR”) (as defined below).  If the Company’s RTSR as of the last day of the Performance Period is in the top quartile of Total Shareholder Return (“TSR”) performance of a peer group of companies, the number of Cumulative NOEPS Shares eligible to vest as determined above shall be increased by [________]. If the Company’s RTSR as of the last day of the Performance Period is in the bottom quartile of TSR performance of a peer group of companies, the number of Cumulative NOEPS Shares eligible to vest as determined above shall be decreased by [________]. No other adjustment shall be made based on the Company’s RTSR. 

		
	(ii)
	For purposes of this Agreement, 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 [________] and ending [________] compared to the TSR performance of a peer group of companies determined by the Committee at its meeting on [________].

    
		
	(b)
	[________] shall be eligible to vest based on the individual’s contribution to the Company’s Customer Value Framework, as determined at the end of the Performance Period, provided that the Grantee remains in the continuous employment with the Company until [________]. Individual payout percentages may range from [________], as determined by the Committee in its sole discretion.  The components of the Company’s Customer Value Framework shall consist of the following areas of focus: safety, customer satisfaction, financial, culture and environmental.

Section 6.    Forfeiture of Performance Shares.  

		
	(a)
	Termination of Service before [________].  Except as set forth below, if Grantee’s Service is terminated for any reason prior to [________], the Grantee shall forfeit the Performance Shares credited to the Grantee’s Performance Share Account.  

		
	(b)
	Retirement, Disability or Death.  

		
	(i)
	Notwithstanding the foregoing, in the event that Grantee’s Service terminates prior to [________] 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 (or the Grantee’s beneficiary or estate in the case of Grantee’s death) shall vest in a pro rata portion of the Performance Shares, based on the actual performance results for the Performance Period, including application of the TSR Adjustment, after the Certification Date described in subsection 4(b) above; provided that the Committee actually certifies that the Threshold Performance Requirement for the Performance Period has been met.  Such pro rata portion of Performance Shares shall be determined by multiplying such number of Performance Shares by 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 [________].

		
	(ii)
	Additionally, if the Grantee terminates Service due to death prior to [________] with more than 12 months remaining in the Performance Period, the Grantee’s beneficiary or estate shall vest, on the date of termination, in a pro rata portion of the Performance Shares equal to the number of Performance Shares that the Grantee otherwise would have received had the Threshold Performance Requirement been met for the Performance Period and vesting had been achieved at the target level (without application of the TSR Adjustment).  Such pro rata portion of Performance Shares shall be determined by multiplying such number of Performance Shares by 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 [________].

		
	 (iii) 
	For purposes of this Agreement, “Retirement” means the Grantee’s termination from Service with the Company at or after attainment of age 55 and completing 10 years of service (within the meaning of the Company’s tax-qualified pension plan, regardless of whether the Grantee is eligible for such plan).

		
	(d)
	Change in Control.  Notwithstanding the foregoing provisions, in the event of a Change in Control, the Performance Shares under this Agreement shall vest in accordance with Article XVI of the Plan.  In the event of any conflict between Article XVI of the Plan and this Agreement, Article XVI shall control.

Section 7.  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 practicable after such date, but no later than [________].  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 8.  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 9.  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 10.  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 11.  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 12.  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 13.  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 14.  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 15.  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, which is incorporated in this Agreement, and in no way alter or modify the Plan.  All capitalized terms used in this Agreement and not defined herein shall have the meaning set forth in 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 16.  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 17.  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 18.  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.
 

[SIGNATURE PAGE TO FOLLOW]

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.

____________________________________________
By:  
Its:  

GRANTEE

By:   _____________________

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