Document:

exv10w2

 

	 	 	 	 	 

Exhibit 10.2

SECOND AMENDMENT TO

THE SAVINGS RESTORATION PLAN FOR

NISOURCE INC. AND AFFILIATES

(AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2004)

     WHEREAS, NiSource Inc. (the “Company”) maintains the Savings Restoration Plan for NiSource
Inc. and Affiliates, as amended and restated effective January 1, 2004 and as further amended
effective January 1, 2005(the “Plan”); and

     WHEREAS, pursuant to Article VIII of the Plan, the Company deems it desirable to amend the
Plan as described below.

     NOW, THEREFORE, a new Section 4.3 is hereby added, effective January 1, 2005, and the
remaining Sections of Article IV are renumbered accordingly, as follows:

“4.3 Special Employer Credits. Any Participant who (1) during the 2003
and/or 2004 Plan Years had a Matching Contribution allocated to his Matching
Contribution Account under the Basic Plan that was less than the maximum Matching
Contribution available under the Basic Plan, (2) authorized After-tax
Contributions and/or Pre-tax Contributions under the Basic Plan equal to at least
6% of his Compensation for such Plan Year(s) and (3) participated in the Account
Balance Option of the NiSource Inc. and Northern Indiana Public Service Company
Pension Plan, the Retirement Plan of Columbia Energy Group Companies, the NiSource
Inc. Subsidiary Pension Plan or the Bay State Gas Company Pension Plan, as
applicable, shall be eligible for an additional Employer credit hereunder. The
additional Employer credit shall be calculated as the difference between (i) the
Matching Contributions that would have been allocated to the Participant’s
Matching Contribution Account under the Basic Plan during the 2003 and/or 2004
Plan Year(s) if his total After-tax Contributions, if any, and Pre-tax
Contributions under the Basic Plan for such Plan Year(s) had been contributed
evenly over each pay period throughout the Plan Year(s) and (ii) the Matching
Contribution actually allocated to the Participant’s Matching Contribution Account
under the Basic Plan for such Plan Year(s).

The additional Employer credit, plus interest (calculated using a rate equal to
4.5% from January 1, 2005 to the date the additional Employer credit is credited
to his Supplemental Savings Account as provided herein) shall be credited to the
Participant’s Supplemental Savings Account in accordance with Section 4.1. The
additional Employer credit shall be credited to his Supplemental Savings Account
as soon as administratively practicable after September 1, 2005, but in any event
no later than December 31, 2005.

 

 

Except where inconsistent with this Section 4.3, the additional Employer credit
shall be subject to all provisions of the Plan applicable to Employer credits.”

     IN WITNESS WHEREOF, the Company has caused this Second Amendment to be executed on its behalf,
by its officer duly authorized, this 26th day of August, 2005.

	 	 	 	 	 
	 	NISOURCE INC.

 	 
	 	By:  	/s/
Michael W. O'Donnellexv10w3

 

	 	 	 	 	 

Exhibit 10.3

SIXTH AMENDMENT TO THE

NISOURCE INC. RETIREMENT SAVINGS PLAN

(AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2002)

     WHEREAS, NiSource Inc. (the “Company”) maintains the NiSource Inc. Retirement Savings Plan, as
amended and restated effective January 1, 2002 and as further amended (the “Plan”); and

     WHEREAS, the Company has reserved the right, pursuant to Sections 12.1 of the Plan, to amend
the Plan and now deems it appropriate to do so in order to provide for additional matching
contributions to certain Plan participants.

     NOW, THEREFORE, the Plan is hereby amended as follows, effective January 1, 2005:

1. By amending Section 2.19 to read as follows:

“2.19 Matching Contributions. Contributions made to the Trust by an Employer on
behalf of eligible Participants as described under Section 4.3, Schedule A and Schedule D, and
allocated to a Participant’s “Matching Contribution Account” in accordance with Section 6.2.”

2. By amending Section 4.1 by adding the following to the end thereof:

“Notwithstanding the foregoing, each Employer shall make an additional Matching Contribution
to the Trust as provided in Schedule D.”

3. By adding Schedule D to read as follows:

“SCHEDULE D

Subject to the limitations of Article V, an Employer shall make an additional Matching Contribution
to the Trust for eligible Participants, as provided herein.

January 1, 2003 – December 31, 2004

Any Participant who (1) was not a Highly Compensated Employee at any time during the 2003 and/or
2004 Plan Years, (2) during the 2003 and/or 2004 Plan Years had a Matching Contribution allocated
to his Matching Contribution Account that was less than the maximum Matching Contribution available
under Schedule A, (3) authorized After-tax Contributions and/or Pre-tax Contributions equal to at
least 6% of his Compensation for such Plan Year(s) and (4) participated in the Account Balance
Option of the NiSource Pension Plan, Columbia Pension Plan, Subsidiary Pension Plan or Bay State
Pension Plan, as applicable, shall be eligible for an additional Matching Contribution. The
additional Matching Contribution shall be calculated as the difference between (i) the Matching
Contributions that would have been allocated to the Participant’s Matching Contribution Account
during the 2003 and/or 2004 Plan Year(s) if his total After-tax Contributions, if any, and Pre-tax
Contributions for such Plan Year(s) had been contributed evenly over each pay period throughout the
Plan Year(s) and (ii) the Matching Contribution actually allocated to the Participant’s Matching
Contribution Account for such Plan Year(s).

The additional Matching Contribution, plus interest (calculated using a rate equal to 4.5% from
January 1, 2005 to the date the additional Matching Contribution is transmitted to the Trust as
provide herein) shall be allocated to the Participant’s Matching Contribution Account in

 

 

accordance
with Section 6.2. The additional Matching Contribution shall be transmitted to the Trust as soon
as administratively practicable after September 1, 2005, but in any event no later than December
31, 2005.

Except where inconsistent with this Schedule D, the additional Matching Contribution shall be
subject to all provisions of the Plan applicable to Matching Contributions.”

     IN WITNESS WHEREOF, the Company has caused this Sixth Amendment to be executed on its
behalf, by its officer duly authorized, this 26th day of August, 2005.

	 	 	 	 	 
	 	NISOURCE INC.

 	 
	 	By:  	/s/
Michael W. O'Donnellexv10w4

 

Exhibit 10.4

August 15, 2005

Ms. S. LaNette Zimmerman

Dear LaNette:

This Letter Agreement confirms your decision to retire from employment with NiSource Corporate
Services Company. If you sign this Letter Agreement, it will constitute the mutual agreement
between you and the Company regarding the termination of your employment. As used herein, “the
Company” shall mean NiSource Inc. or any of its affiliates or subsidiaries, including NiSource
Corporate Services Company, and “NiSource” shall mean exclusively NiSource Inc.

	1.	 	Employment Status
	 
	 	 	Unless you are discharged for cause, you will continue as an active employee of the Company
through December 31, 2005 (“Separation Date”) for purposes of determining your NiSource
post-retirement health, life insurance and retirement benefits, as well as participation in
the 2005 NiSource bonus plan. You will be treated as retiring as an active employee on
January 1, 2006 for purposes of vesting (a) any restricted and contingent stock in NiSource
owned by you and (b) any NiSource stock options owned by you. Thereafter, you will retire
from the Company with the benefits which you are entitled to as a retired employee of the
Company and, subject to Board approval, those additional benefits set forth in Paragraphs
2, 3 and 6, provided that you shall be entitled to the benefits set forth in Paragraphs 2,
3 and 6 only after you timely execute a release in the form attached as Exhibit 1 hereto.
	 
	2.	 	Business Transition
	 
	 	 	You will not be required to report to your Company office or perform your management duties
after October 5, 2005 although you may be required to render services as requested to
ensure a smooth business transition between October 5, 2005 and December 31, 2005. You
will resign from your officer positions effective October 5, 2005 and will fulfill all
reporting obligations through October 5, 2005. After your Separation Date, should the
Company require further transition services, the Company will compensate you for your time
at a rate of $200.00 per hour, or a daily rate of $1,000.00 if you exceed 4 hours per day,
and the Company agrees to reimburse you for any reasonable expenses incurred such

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	 	 	as meals or travel in association therewith so long as the Company has approved them prior
to being incurred. 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.	 	Retirement Payments

	 	A.	 	Special Retirement Bonus

	 	 	On December 31, 2005, in recognition of your past service to the Company, you will receive
a special retirement bonus in the amount of $100,000.00 (the “Special Retirement Bonus”).
The payment will be subject to legally-mandated deductions for Social Security and federal,
state and local taxes and will be considered compensation for purposes of calculating your
lump sum pension benefit described in subparagraph D below.

	 	B.	 	Severance Payment

	 	 	On December 31, 2005, you will receive a lump sum payment in the amount of $325,000, which
equals 52 weeks of base salary at the rate in effect on the Separation Date. 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.

	 	C.	 	Previously Issued Stock Options and Restricted Stock Grants

	 	 	Exhibit 2 lists the terms of all stock options, restricted stock grants and contingent
stock grants previously issued to you and which remain outstanding as of January 1, 2006.

	 	D.	 	Retiree Medical Coverage, Pension and Other Benefits

	 	 	You will be eligible to participate in the Company’s Retiree Medical Plan as of January 1,
2006. Your lump sum pension benefit will become payable on January 1, 2006 and will be
based on the terms set forth in your July 15, 2002 Letter Agreement. The amount will be
calculated pursuant to the discount rate set forth in the plan. If that rate results in a
lower benefit than would have resulted from using the September 2004 rate, the Company will
make a special payment to you in the amount of the difference. That payment will not be
considered compensation for purposes of calculating your lump sum pension benefit. You
will continue to receive Ayco financial counseling and tax preparation for tax

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	 	 	years 2006 and 2007. The Company will pay for an annual medical examination for you at
Mayo Clinic in 2006 and 2007.
	 
	4.	 	Vacation
	 
	 	 	You are eligible to receive a lump sum payment representing compensation for your accrued
and unused vacation as of December 31, 2005. 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
	 
	 	 	The termination of your employment is 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. You are entitled to 18 months of COBRA for dental and
vision insurance on a self-pay basis commencing January 1, 2006.
	 
	6.	 	Long Term Incentive Program
	 
	 	 	You will be treated as an active employee of the Company through January 1, 2006 for
purposes of the 1994 Long Term Incentive Plan as amended, including the vesting of any
contingent or restricted stock or stock options.
	 
	7.	 	Indemnification
	 
	 	 	You will be entitled to indemnification by the Company pursuant to the provisions of
Article 6 of NiSource Corporate Services Company’s by-laws in effect on December 31, 2005
notwithstanding any change made thereafter, except as such change may be required by law.
You will also be entitled to coverage under the directors and officers liability insurance
coverage maintained by the Company (as in effect from time to time) to the same extent as
other former officers of the Company.
	 
	8.	 	NiSource Re-Employment
	 
	 	 	If you seek re-employment with any NiSource Company and are subsequently rehired within
twelve months of your Separation Date, as a condition of re-employment you must agree to
repay your severance payment on a pro rata basis as of the rehire date. If you are rehired
and your position is subsequently eliminated, the Company reserves the right to base any
future severance payments on your rehire date.

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	9.	 	Confidentiality
	 
	 	 	You acknowledge that preservation of a continuing business relationship between the Company
and their 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 in a proceeding to enforce your rights
under this Letter Agreement or pursuant to a subpoena, order of court or other governmental
or administrative directive, compliance with which is mandatory, provided you give the
Company notice that you have been served with such a subpoena or order immediately upon
receiving service.
	 
	 	 	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 or the
business of any NiSource company which are in your possession or under your control,
including confidential personnel or benefits information, 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.
	 
	 	 	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 paragraph 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 local, state (including but not limited to the Indiana Civil Rights Law and the
Illinois Human Rights Act), and federal civil, common law, statutory (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, the Corporate and Criminal Fraud Accountability Act of 2002 and the Employee
Retirement Income Security Act of 1974, as those Acts are amended), and equitable claims
against the Company and NiSource, Inc. and its subsidiaries and affiliated companies, and
all of the stockholders, predecessors, successors, agents, directors, officers, employees,
representatives, and attorneys of NiSource,

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	 	 	and its subsidiaries and affiliated companies, known or unknown, occurring or arising prior
to you signing this Letter Agreement, except for claims relating to the enforcement of this
Letter Agreement.
	 
	 	 	You acknowledge and agree that this release is being given only in exchange for
consideration to which you are not otherwise entitled
	 
	11.	 	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.
	 
	12.	 	Outstanding Charges
	 
	 	 	You hereby agree to pay the Company any outstanding amounts owed to the Company, and
further agree that by signing this Letter Agreement you hereby authorize the Company to
deduct any outstanding charges from your lump sum or salary continuation payments.
	 
	13.	 	Governing Law
	 
	 	 	This Letter Agreement shall be construed in accordance with the laws of Indiana.
	 
	14.	 	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 right to enforce the remainder of this Letter Agreement.
	 
	15.	 	Non-Disclosure
	 
	 	 	Except to the extent that disclosure is required to enforce your rights under this Letter
Agreement or otherwise is required by subpoena, order of court or other governmental or
administrative directive, compliance with which is mandatory, you expressly agree to 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.

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	 	 	You agree not to make any false and disparaging statements about the Company to any media
outlet, industry group, financial institution or analyst, or current or former employee,
consultant, client or customer of the Company.
	 
	 	 	Nothing herein should be construed as a limitation on your ability to consult with your
counsel or with an administrative agency.
	 
	16.	 	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 those sections of other Agreements specifically referenced
herein, constitute the complete understanding between you and the Company relating to your
separation and supersede 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.
	 
	17.	 	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 C. Skaggs by August 19, 2005, 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
Agreement 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 C. Skaggs
 	 
	 	 	 
	 	Robert C. Skaggs 	 

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	 	Accepted:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/ S. LaNette Zimmerman
	 	Date:
	 	August 17, 2005
	 

	 	 
	 	 	 	 
	 

	 	S. LaNette Zimmerman	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Witness:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/ Peter V. Fazio, Jr.
	 	Date:
	 	August 17, 2005
	 

	 	 
	 	 	 	 

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EXHIBIT 1

GENERAL RELEASE

Attn: This General Release Should Not Be Signed Prior to Employee’s Separation Date, December 31, 2005.

     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, representatives 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 any
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 1, 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. 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 the terms of this General Release.
Moreover, I was advised in writing of my right, for seven days following my execution of the Letter Agreement, to revoke the Letter Agreement

 

			
	1	 	     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; the Illinois Human Rights Act
and the Indiana Civil Rights Act.

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and thereby decline to execute this General Release. 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 is applicable to any
claims arising prior to the date of this General Release and is binding upon me, my heirs,
executors and assigns.

 

S. LaNette Zimmerman

Date:                               

 

 

Witness’ Signature

Date:                               

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Exhibit A

Non-Qualified Stock Options

	 	 	 	 	 	 	 	 	 
	Grant Date	 	Number of Options	 	 	Price	 
	January 1, 2001
	 	 	20,047	 	 	$	25.94	 
	January 25, 2002
	 	 	24,258	 	 	$	21.005	 
	January 1, 2004
	 	 	43,506	 	 	$	21.86	 
	January 1, 2005
	 	 	106,800	 	 	$	22.62	 
	 
	 	 	 	 	 	 	 
	Total
	 	 	194,611	 	 	 	 	 

Note: Upon retirement the plan participant has three years to exercise options

TARSAP — Contingent Stock

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Number of	 	 	 	 	 	 	 
	 	 	Contingent Shares	 	 	Pro-rata Percentage	 	 	Pro-rata Shares on	 
	Grant Date	 	Granted	 	 	on January 1, 2006	 	 	January 1, 2006	 
	January 1, 2003
	 	 	28,267	 	 	 	85.71 	%	 	 	24,228	 
	January 1, 2004
	 	 	28,148	 	 	 	66.67	%	 	 	18,766	 
	 
	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	56,415	 	 	 	 	 	 	 	42,994	 

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