Major Terms of the City Light Lease Settlement

Financial Terms

• I&M would pay the City a total of $39.2 million over 15 years, with $5 million of that coming as an upfront payment.

Waiver of City's Claims

• The City waives its claim to provide electric service to customers in Fort Wayne.
• The City acknowledges I&M is the exclusive electricity supplier in Fort Wayne.
• The City settles damages claims under the Service Area Assignment Act.
• The City waives the right to purchase betterments or improvements I&M made to the Leased Property.

Non-Lease Claims and Pension Issues

• The City pays I&M $550,000 for non-Lease related services performed by I&M.
• The City agrees to work with I&M to wind-down the City Light pension plan, with the City keeping any overfunded amount in the plan (approximately $700,000).

Transfer of Leased Property and Escrow

• The lease is terminated and all claims under the lease are released.
• The City will transfer Leased Property, including real estate, to I&M.
• Amounts I&M has paid into escrow since Feb. 28, 2010 will be released.

Approval of Agreement

• Agreement is subject to approval by the Fort Wayne City Council and the Indiana Utility Regulatory Commission.
• The City and I&M will work together to obtain necessary approvals.
• If City Council or the Commission do not approve the Agreement in its entirety,
• either party has the option to declare the Agreement null and void.